Expiration of US License for Iranian Gas Imports to Iraq
The license allowing the importation of Iranian gas into Iraq is set to expire next week. A spokesperson from the Iraqi Electricity Ministry has confirmed that no official notification regarding the cessation of gas supplies has been received.
Ahmad Musa Abadi, the spokesman for the Ministry, stated, "While it is accurate that Iran’s gas export license will expire next week, we have not been informed about any gas supply cuts. Our efforts to secure alternative energy sources and diversify electricity production are ongoing."
Iraq relies on Iran for approximately 50 million cubic meters of gas on a daily basis. Abadi further elaborated, "Identifying alternatives will present challenges; however, the agreement with Turkmenistan, which will enable us to import 20 million cubic meters of gas per day, is on track for implementation in the near future."
Additionally, he noted, "In light of the agreement to source gas from Gulf countries, we are focused on enhancing electricity production to reduce reliance on imported gas."
The expiration of the US license is slated for November 8. Iranian Deputy Oil Minister Saeed Tavakoli indicated on November 1 that despite the impending expiration, the Iraqi government may receive a temporary extension from the new US administration to continue purchasing Iranian gas.
Since 2018, the United States has imposed several sanctions restricting Iraq’s ability to acquire Iranian energy. Due to these sanctions, Baghdad is unable to make cash payments directly to Tehran; instead, it is permitted to transfer funds to an Iraqi bank account for humanitarian purposes, including the acquisition of medical supplies.
Iraqi Oil Minister Hayyan Abdul Ghani remarked on December 21, "The volume of gas exported from Iran is substantial; however, continuous supply may not be feasible given Iran’s unique circumstances."
Summary
As the expiration date for the US license approaches, Iraq is actively pursuing alternatives to Iranian gas while navigating the complexities of international sanctions and energy procurement. The situation underscores the ongoing challenges faced by Iraq in securing a stable energy supply critical for its electricity generation and economic stability.
