Iraq’s Iranian Gas Import Contract Under Review Amid Rising Tensions
Date: March 1, 2025 – Location: Baghdad
The Parliamentary Oil and Energy Committee has announced an impending review of Iraq’s contract for importing gas from Iran, a critical component for the country’s energy infrastructure. Committee member Ali Al-Lami articulated the significant pressures the United States is applying on Iran, particularly within the energy sector. He emphasized the vital role Iranian gas plays in powering a substantial portion of Iraq’s electricity production, which is essential for sustaining urban and rural communities.
Al-Lami noted that the current agreement between Baghdad and Tehran for gas imports is set to expire in March. He warned that if U.S. sanctions hinder the renewal of this contract, Iraq would face significant challenges, especially given that domestic gas production lacks the capacity to meet demand for power generation.
"Iraq is not yet positioned to source gas from alternative countries without substantial lead time," Al-Lami stated. He highlighted potential alternatives, such as importing gas from Turkmenistan or accessing resources via the Arabian Gulf, but emphasized that these solutions require considerable infrastructure development and time.
In light of the impending summer season, when consumer demand peaks due to rising temperatures, the government is actively seeking exemptions to extend gas imports from Iran, aiming to keep the situation insulated from the broader sanctions landscape.
Al-Lami expressed optimism that the current Iraqi leadership, under Prime Minister Mohammed Shia Sudani, could successfully negotiate ongoing exemptions for Iranian gas imports until domestic projects designed to tap into local gas fields are completed. Expectations for these initiatives to yield sufficient production for self-sufficiency within a two to three-year timeframe are high.
Furthermore, Iranian Deputy Minister of Oil Saeed Tukli confirmed that Iraq is expected to receive temporary permits for gas imports. Tukli, who is also the CEO of the Iranian National Gas Company, indicated that Iraq frequently secures such permits, which are crucial for meeting its gas demands.
"Based on prior arrangements, we anticipate that these exceptions will continue," Tukli asserted, reinforcing the likelihood of ongoing cooperation between the two nations regarding gas imports.
