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Iraq Launches Basra Gas Pipeline Project to Boost Power Supply

The Iraqi Ministry of Oil commenced a significant project on Friday aimed at extending the gas pipeline in Basra Governorate, which will serve the country’s electric power plants.

According to a statement from the ministry, Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayyan Abdel-Ghani Al-Sawad, visited the Khor Al-Zubayr port to oversee the project’s progress.

This visit was intended to monitor ongoing activities at the Khor Al-Zubayr port related to the infrastructure required for the gas pipeline aimed at enhancing power generation capacity.

The ministry highlighted the commitment of the Oil Projects Company to advance the project efficiently, adhering to the prescribed timeline and established engineering and technical specifications, given its critical role in supplying gas to power stations.

The pipeline will stretch approximately 40 kilometers from Khor Al-Zubair to Nazem Shatt Al-Arab, featuring a capacity of 42 knots. Work on the project is proceeding rapidly, with efforts aligned with national standards set by the Oil Projects Company (SCOP).

In a related development, the Parliamentary Oil and Gas Committee disclosed on March 9 that the Iraqi government is considering the importation of Gulf gas as an alternative to Iranian gas in light of recent U.S. sanctions, with a project ongoing at a high pace in the Basra region.

The deadline for U.S. exemptions that had allowed Iraq to import Iranian gas expired on March 8, 2025. As a result, the Baghdad government faces challenges regarding the acquisition of necessary gas supplies to operate electricity stations nationwide.

The Ministry of Electricity has established gas-dependent power stations across various Iraqi provinces, while the Basra facilities utilize gas, crude oil, and black oil, which has helped stabilize the electrical grid in the region.

It was reported that the Prime Minister is personally monitoring the gas transport pipeline project originating from the floating platform in Basra, emphasizing the ministry’s initiation of work nearly 30 days ago, with a projected completion timeline of 120 days. Currently, the project has surpassed a 30% completion rate and is projected to transport Gulf gas amounts reaching 200 shrines.

The U.S. State Department confirmed the termination of exemptions that permitted Iraq to purchase electricity from Iran, part of a broader strategy to exert maximum pressure on Tehran. Washington underscored its stance against providing any economic reprieve to Iran, aiming to dismantle its nuclear ambitions, limit missile development, and curb its support for militant groups.

In response, Iraqi Foreign Minister Farhad Aladdin acknowledged that the cessation of the exemption creates temporary operational challenges for Iraq. He noted that the government is actively seeking alternatives to ensure the sustainability of electricity supplies while minimizing potential disruptions. Enhancing energy security remains a national priority, focusing on boosting local production, optimizing network efficiency, and investing in new technologies.

For years, Iraq has relied on electricity and gas imports from Iran, particularly during the peak summer months, and has benefited from American exemptions issued multiple times annually.

In October 2024, Iraq signed an agreement with Turkmenistan to import gas at a rate of up to 20 million cubic meters per day via the Iranian pipeline network, employing a swap mechanism for transportation ease. However, this initiative has yet to commence due to ongoing technical issues, as recently indicated by the Ministry of Electricity.

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