Iraq Pursues Alternatives to Iranian Gas Imports Amid Sanctions Concerns

Iraq is seeking alternatives to Iranian gas imports following U.S. sanctions. Government officials stated efforts are underway to explore options from Gulf nations and Turkmenistan. Additionally, Iraq is establishing LNG terminals for self-sufficiency while addressing electricity shortages exacerbated by reduced Iranian supplies.

Iraq is actively seeking alternatives to its dependence on Iranian gas imports due to the impact of U.S. sanctions. A statement from a government official confirmed that the country is exploring gas options from the Gulf region. The administration under U.S. President Donald Trump recently announced the cessation of a sanctions waiver that had permitted Iraq to import electricity from Iran, however, gas imports have not yet been restricted.

Currently, Iran supplies approximately one-third of Iraq’s energy needs through gas and electricity. Saad Jassem from Iraq’s electricity ministry indicated a strategic shift towards diversifying energy sources, stating, “Previously, we only had imports from Iran, but there are government directives and a political will to rely on multiple sources of imports.”

Although Iraq has not ceased its Iranian gas imports, tensions between the U.S. and Iran are influencing the situation. A U.S. diplomat emphasized the expectation for Iraq to expedite efforts in reducing its reliance on Iranian natural gas. Despite possessing considerable oil resources, Iraq continues to grapple with significant infrastructure issues and frequent power outages.

Jassem highlighted the preparations being made for potential disruption in Iranian gas supplies, noting that Iraq has been in discussions with Qatar and Oman to secure natural gas. Additionally, Iraq is negotiating gas purchases from Turkmenistan through pipelines in Iran, as part of diversifying its energy imports.

In an effort to alleviate energy shortages, Iraq is establishing two floating liquefied natural gas terminals in Khor al-Zubair, expected to be operational by June. These terminals could process significant volumes of gas, contributing to reducing reliance on Iranian supplies. Jassem emphasized, “The question of energy is vital for citizens: cutting off gas would mean a significant reduction in electricity supply.”

As Iraq aims to achieve energy self-sufficiency, Prime Minister Mohammed Shia al-Sudani’s government has set a goal to reduce gas flaring in oil fields by 2028, intending to utilize this gas for power generation. Nevertheless, Iraq’s gas imports from Iran have been inconsistent, affecting electricity supply amid rising domestic consumption, particularly in extreme heat conditions.

Despite a recent renewal of a five-year gas import agreement with Iran, Iraq is experiencing a shortfall in gas supply, receiving only 15 million cubic meters daily, far below the contractually agreed amount of 50 million cubic meters. This electricity shortage remains a critical issue, triggering public protests, especially during the hotter months.

Iraq is making significant strides in diversifying its gas imports to reduce dependence on Iran amid rising political tensions and economic sanctions from the U.S. By exploring partnerships with Gulf countries and enhancing domestic gas capabilities, Iraq aims to achieve energy self-sufficiency and stabilize its electricity supply, which has been a source of public discontent. However, developing alternative sources remains a challenge in light of existing infrastructure issues and fluctuating Iranian gas deliveries.

Original Source: www.wyomingnewsnow.tv