Iraq seeks to maintain gas and electricity imports from Iran following the lifting of U.S. sanctions exemptions in March 2024. Televised discussions with U.S. officials address energy supply concerns and potential alternatives. Iraq has plans to import gas from Turkmenistan and LNG from Qatar, yet immediate substitutes and reliable electricity supply remain critical issues as summer approaches.
Iraq is grappling with the recent termination of its exemption for importing gas and electricity from Iran, effective March 8, 2024. Following this change, the Chairman of the Iraqi Parliament’s Economic Committee engaged in discussions with the U.S. Charge d’Affaires in Baghdad to address the consequences of potential U.S. sanctions, emphasizing the catastrophic impact that halting Iranian gas imports could have on Iraq’s electricity system during the summer months.
During this meeting, Atwan Al-Atwani highlighted the importance of ongoing dialogue between Iraq and the U.S. to improve relations and tackle pressing energy issues. The U.S. Charge d’Affaires, Daniel Rubenstein, acknowledged the energy-related concerns raised by Al-Atwani and pledged to communicate these messages to the U.S. government, noting that imports of natural gas had not yet been affected by sanctions.
Under the March 2024 agreement, Iran is committed to exporting 50 million cubic meters of gas per day to Iraq, with a contract value of approximately six billion dollars annually. Additionally, Iraq previously signed a five-year contract in July 2022 to acquire 400 megawatts of electricity from Iran.
Despite efforts over the years to diminish reliance on Iranian gas, Iraq continues to find alternatives. In October 2024, Iraq secured an agreement to import 20 million cubic meters of gas per day from Turkmenistan. Furthermore, there are plans to purchase liquefied natural gas (LNG) from Qatar, with an LNG storage terminal currently under construction at the Faw port.
Another option discussed is the Qatar-Turkey gas pipeline, which had initially been halted but is under consideration once more due to regional shifts, potentially allowing gas supply to Iraq’s southern border. Strengthening connections with the Gulf Cooperation Council’s electricity grid could also enhance Iraq’s energy independence through a transmission line from Kuwait to Basra.
Moreover, a substantial $27 billion contract with Total Energy aims to enhance Iraq’s energy capacity through multiple projects across oil, gas, and renewables. However, transitioning toward these alternatives will require considerable time and resources, with immediate solutions remaining limited.
Significantly, three Iraqi energy officials recently conveyed to Reuters the urgent challenges Iraq faces in substituting Iranian energy imports, which could severely impact domestic electricity supply, especially in the summer. A senior official from the Ministry of Electricity confirmed that the government is already implementing urgent measures to mitigate potential shortfalls in electricity supply due to the recent U.S. decisions.
In conclusion, Iraq is navigating significant energy challenges as its exemption for gas and electricity imports from Iran has been lifted. Recent discussions with U.S. officials reflect a search for viable solutions amid potential sanctions. While Iraq is exploring alternatives such as imports from Turkmenistan and LNG from Qatar to reduce dependence on Iranian gas, immediate substitutes remain scarce, raising concerns about future electricity supply, especially during peak demand periods in summer.
Original Source: www.tehrantimes.com
