Iraq is actively seeking alternatives to its reliance on Iranian gas as it looks to reduce its dependency on its neighbor amid ongoing sanctions. The country has traditionally relied heavily on Iran for its energy needs, with Iran providing about a third of Iraq’s electricity and gas supply.
Iraq’s electricity ministry official, Saad Jassem, revealed that while the country still imports gas from Iran, the government is exploring multiple sources of natural gas, including from the Gulf region. “We have not yet stopped Iranian gas imports, but there are government directives and political will to diversify our imports,” said Jassem.
The pressure to reduce dependency on Iran has intensified following the US government’s decision to end a sanctions waiver that allowed Iraq to purchase electricity from Iran. Although the waiver has ended, Iraq still has not been prohibited from importing Iranian gas. The US has made it clear to Iraq that it needs to make progress in eliminating its reliance on Iranian natural gas.
Despite Iraq’s vast oil wealth, the country continues to struggle with significant challenges, including crumbling infrastructure and daily power shortages. The government is exploring various options to mitigate these energy challenges. Qatar, the region’s largest natural gas producer, has shown willingness to provide Iraq with natural gas at preferential rates. Additionally, Iraq is negotiating with Oman and Turkmenistan for gas imports. The government is also investing in two floating liquefied natural gas (LNG) terminals in the Khor al-Zubair region, which are expected to be operational by June.
These terminals will help process between 14 and 19 million cubic meters of gas per day, potentially increasing to 800-900 million cubic feet per day with a third unit. Jassem emphasized that these efforts aim to compensate for the gap left by the reduction in Iranian gas supplies, particularly in southern Iraq.
Prime Minister Mohammed Shia al-Sudani’s government is also focused on making Iraq more energy self-sufficient by reducing gas flaring in the country’s oil fields. The goal is to convert this gas into energy for power stations by 2028.
Power shortages have been a sensitive issue in Iraq, particularly during the summer months when high temperatures and energy demand create significant challenges. The issue of reliable energy supplies remains critical, as electricity shortages continue to spark protests across the country.
