By Anas al-Bar | 2025-03-21

The Iraqi government has been working to accelerate energy independence initiatives in light of Tehran's unreliability as an energy partner and the recent expiration of a US sanctions waiver permitting gas imports from Iran.

On March 8, the US rescinded its sanctions waiver as part of a "maximum pressure" campaign against Tehran that aims to end its nuclear threat, curtail its ballistic missile program and stop it from supporting terrorist groups.

Tehran has meanwhile crippled Iraq's ability to generate power, in December slashing gas supplies from 25 million to just six million cubic meters daily -- far below the contracted 50 million cubic meters required during peak periods.

"This sudden, unilateral action caused us to lose nearly 6,000 megawatts from the national grid," a senior Iraqi government official told Shafaq News December 1.

The cuts left Baghdad and Iraq's central provinces with only five to eight hours of daily electricity at plants relying on Iranian gas, Ministry of Electricity spokesman Ahmed Musa told the outlet December 26.

Iraq's current production of 27,000 megawatts, through plants that mostly operate on gas, falls significantly short of its 40,000-megawatt daily needs, according to Iraqi officials.

The situation becomes particularly acute during summer months, when temperatures can exceed 50°C, with Iraq's growing population and expanding housing projects contributing to the demand for electricity.

Iranian gas imports can support the generation of up to 8,000 megawatts, "but this production is unstable due to constant supply fluctuations," economist Abdul Rahman al-Mashadani told Al-Fassel.

Alternative energy sources

Iraq currently burns about 17.374 million cubic meters of gas annually in flaring operations, World Bank data shows, representing a significant untapped domestic resource that could help reduce foreign energy dependence.

Construction has begun on a floating liquefied natural gas (LNG) terminal at Khor Al-Zubair port in Basra that will supply power stations with a daily 600 million cubic feet of gas before summer, Musa told Al-Fassel.

Qatar and Oman could replace about one-third of Iranian imports as potential LNG suppliers, and the ministry is increasing electricity transmission through Jordan and Türkiye, he said.

A Gulf connection project will add 500 megawatts this year, and some power stations are being converted to operate on heavy fuel oil, he added.

Iraq's Oil Ministry has committed $10 billion through 2030 for gas infrastructure development, while French company TotalEnergies is investing $25 billion in Iraq's energy sector, according to Deputy Oil Minister Izzat Saber.

This includes a 1,000-megawatt solar power plant in Basra's desert, Musa said.

Iraq also is seriously studying gas imports from Qatar and Algeria, among other initiatives, Saber said in February.