Iraq’s Electricity Sector Prepares for Iranian Gas Disruptions
The Director General of the Fuel Department at the Ministry of Electricity, Saad Jassim, has announced the implementation of proactive measures to mitigate potential interruptions in Iranian gas supply. These plans, characterized as preparations for "the worst scenario," involve diversifying gas imports from alternative sources, including Qatar, Oman, and Turkmenistan.
Jassim emphasized the shift away from sole reliance on Iranian gas, reflecting both governmental and political will to establish multiple channels for energy imports. He stated, "We must take into account the worst possible scenarios, and if there is an interruption, we have prepared alternatives."
In terms of potential suppliers, Jassim highlighted Qatar’s position as a leading natural gas producer, noting successful dialogue and willingness from Qatari officials to provide Iraq with gas at preferential rates. He also indicated that Oman is being considered as a viable option.
Discussions are currently underway to secure gas from Turkmenistan, which would be delivered via pipelines crossing Iran. Furthermore, Iraq is advancing construction on two floating liquefied natural gas (LNG) facilities located in the Khor Al-Zubair region in the southern part of the country, with expectations to bring these facilities online by June.
Jassim detailed that these new LNG plants could process between 14 to 19 million cubic meters (approximately 500 to 700 million cubic feet) of gas per day. Additionally, he noted that the establishment of a potential third unit could further enhance capacity to between 800 and 900 million cubic feet, thus assisting in offsetting the anticipated shortfall from Iranian gas supplies critical to southern Iraq.
The urgency of these developments has been heightened following the recent expiration of the exception period granted by the U.S. to Iraq, which allowed for continued imports of Iranian gas necessary for electricity generation across the country. A spokesperson for the U.S. State Department confirmed that this exemption, in place since 2018, was revoked amid ongoing sanctions that reflect the administration’s strategy of "maximum pressure" on Iran.
In the wake of this policy shift, the Iraqi Ministry of Electricity has detailed contingency strategies for the upcoming summer. Ministry spokesperson Ahmed Al-Abadi remarked on the significant implications of losing Iranian gas, which translates to a potential loss exceeding 8,000 megawatts of electricity capacity. Nevertheless, he reassured that the Iraqi government and relevant ministries are equipped with a comprehensive plan to avert a crisis and maintain operational stability amid these changes.
