Iraqi Energy Sector Faces Challenges Amid U.S. Sanctions on Iranian Gas Imports
On February 8, 2025, the Parliamentary Electricity and Energy Committee of Iraq issued a stark warning regarding the expected energy shortages during the upcoming hot summer. This forecast comes in light of the recent enforcement of a U.S. directive preventing Iraq from importing Iranian gas, a critical energy source for the nation.
Committee member Al-Saadi expressed concerns over the potential strain on Baghdad and the Middle Euphrates governorates, citing the anticipation of intensified heat coupled with a significant shortage of gas resources. The ramifications of the U.S. decision could hinder the country’s ability to maintain adequate electricity supply as summer approaches.
To mitigate these issues, Iraq is now looking toward alternative sources of gas, specifically from Qatar. Following a rejection by the U.S. administration of Iraq’s request to import gas from Iran, officials anticipate that the completion of a new pipeline and associated infrastructure—being developed by the Ministry of Oil—will be achieved by July, setting the stage for expanded imports of Qatari gas.
Al-Saadi elaborated that viable solutions to compensate for the loss of Iranian gas are limited. However, coordinated efforts between the electricity and oil ministries are underway to address the shortfall of Iranian gas, which currently fuels approximately 45% of the nation’s power stations.
Furthermore, the French firm Total is engaged in urgent projects aimed at harnessing and investing gas in a manner that supports Iraq’s electricity generation capabilities. The Parliamentary Committee is actively monitoring the progress of these initiatives and is in ongoing discussions with the Minister of Electricity to explore solutions that minimize adverse outcomes for the public.
Last month, the U.S. imposed new sanctions targeting a global network involved in smuggling Iranian oil to China. This action represents a continuation of the "maximum pressure" campaign initiated by the Trump administration against Iran, with the U.S. Treasury revealing that the network facilitated the movement of millions of barrels of Iranian crude, generating substantial financial support for Iran’s military and regional allies.
The expiration of the U.S. exemption permitting the export of Iranian gas to Iraq last Thursday further compounds the energy challenges facing the nation as it prepares for the sweltering summer months ahead.
In conclusion, Iraq’s energy sector is at a critical crossroads, necessitating prompt and effective responses to secure an uninterrupted supply of energy as it pivots from reliance on Iranian gas toward partnerships with alternative suppliers.
