Iraq is attempting to uphold its gas and electricity imports from Iran following the lifting of U.S. exemptions. The Chairman of the Iraqi Parliament’s Economic Committee emphasized the dire consequences of halting these imports. Despite efforts to find alternatives, immediate solutions remain limited, jeopardizing Iraq’s electricity supply, especially during the high-demand summer months.
Iraq is facing challenges in maintaining its gas and electricity imports from Iran after the U.S. lifted exemptions on March 8, 2024. The Chairman of the Economic Committee of the Iraqi Parliament, Atwan Al-Atwani, met with U.S. Charge d’Affaires, Daniel Rubenstein, to discuss the potential catastrophic impact of cutting off Iranian gas imports on Iraq’s electricity system, especially during the summer months. Al-Atwani stressed the need for ongoing dialogue to improve bilateral relations.
Al-Atwani highlighted the significance of the discussions given the sensitive circumstances, including the U.S. energy and banking sanctions. Rubenstein expressed understanding of Iraq’s concerns and indicated that natural gas imports were not currently included under these sanctions. He promised to relay the matters raised back to the U.S. government to seek solutions that would benefit both countries.
Iran has committed to exporting 50 million cubic meters of gas per day to Iraq under a $6 billion annual contract established in March 2024, alongside prior agreements for electricity imports. However, Iraq aims to reduce its reliance on Iranian gas through various initiatives. Recent agreements include an October 2024 deal with Turkmenistan to import 20 million cubic meters of gas daily and an ongoing development of an LNG storage terminal in the Faw port, with Qatar anticipated to be the main supplier.
Additionally, the revitalization of the Qatar-Turkey gas pipeline could serve as a future alternative, potentially providing gas to Iraq’s power plants. Iraq is also exploring connection to the Gulf Cooperation Council’s electricity grid through a transmission line from Kuwait to Basra, which would alleviate its dependence on Iranian electricity. The $27 billion contract signed with Total Energy will also contribute to expanding Iraq’s energy production capacity through various projects for oil, gas, and renewable resources.
Despite these developments, immediate alternatives to Iranian energy imports seem unlikely. As some Iraqi officials revealed to Reuters, without Iranian gas, electricity supply for domestic consumption, particularly in the summer, will face significant difficulties. The Iraqi government has begun taking urgent actions to mitigate the impact of the U.S. decision on the nation’s electricity supply.
Iraq is grappling with the ramifications of U.S. sanctions which have lifted exemptions for Iranian gas and electricity imports. While Iraq’s government seeks to negotiate solutions with U.S. officials, the country is simultaneously pursuing alternative energy sources. However, the depth of its reliance on Iranian energy poses immediate challenges, particularly for electricity supply amidst the intensifying summer heat. Without swift action and investment, Iraq’s energy stability remains uncertain.
Original Source: www.tehrantimes.com
