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Iraq’s Power Crisis: 3-Year Dependency on Iranian Gas Looms

Baghdad, Iraq

Iraqi MP Thaer Al-Jubouri stated on February 28, 2025, that any transition away from reliance on imported Iranian gas for power generation will require a minimum of three years.

In a recent interview, Al-Jubouri highlighted the impending expiration of the gas import contract with Iran in March, emphasizing its potential repercussions on Iraq’s electricity generation capacity. A significant proportion of Iraq’s power plants depend on this imported gas, and any disruption could severely affect energy supply to urban and rural communities.

He elaborated on the challenges of sourcing alternative gas supplies, particularly pointing out that importing gas from Turkmenistan presents difficulties. Chief among these challenges are the logistical requirements and the establishment of transport infrastructure. Furthermore, importing liquefied gas via southern Iraq’s ports necessitates a substantial gas treatment facility, complicating the process.

Al-Jubouri remarked that Iraq’s domestic gas production currently falls short of meeting growing demands, being confined to certain fields. The development of these fields takes significant time, with the imminent cessation of Iranian gas supplies expected to yield challenging consequences. He noted that the government’s options are constrained, particularly in the absence of a clear strategy to either renew the gas import contract with Iran or sustain its supply, especially given Iran’s own increasing domestic energy needs during colder periods.

Looking ahead, Al-Jubouri cautioned that Iraq’s electricity system could face substantial challenges during the summer of 2025. He expressed hope that both the government and the Ministry of Electricity will devise effective strategies to improve electricity supply across various Iraqi cities.

In a related development, Saeed Tukli, CEO of the Iranian National Gas Company, confirmed on February 8, 2025, that negotiations for exporting gas to Iraq are progressing. He mentioned the recent signing of a long-term gas export agreement with Iraq, indicating that exports are ongoing. However, he cautioned that the volume of gas exported can fluctuate based on contractual conditions.

Additionally, Atwan Al-Atwani, the head of the Parliamentary Finance Committee, issued a warning regarding the risk of a “collapse” in Iraq’s national electricity grid should Iranian gas imports cease abruptly. In light of this concern, the committee recently convened with Minister of Electricity Ziyad Ali Fadel and senior ministry officials to discuss plans for the upcoming summer season. The discussions focused on strategies to enhance electricity production, improve service delivery, and boost financial revenues in line with the government’s objectives.

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