Iraq Accelerates Energy Projects Amidst US Sanctions to Address Electricity Shortages

Iraq is rapidly advancing strategies to manage a predicted electricity shortage this summer due to the US ending its sanctions waiver for Iranian energy imports. Prime Minister Mohammed Shia Al Sudani is promoting energy independence, while the Iraqi government is prioritizing projects related to gas imports and linking power stations. Recent agreements with Turkmenistan and Jordan signify a shift towards diversifying energy sources and enhancing domestic production capabilities.

Iraq is intensifying efforts to tackle a projected electricity shortage this summer following the US withdrawal of a waiver allowing it to procure electricity from Iran. This decision is part of the US administration’s strategy to exert maximum pressure on Tehran, aiming to eliminate its nuclear threats and halt its sponsorship of terrorism. The US embassy in Baghdad has urged Iraq to reduce its reliance on Iranian energy sources swiftly while acknowledging Prime Minister Mohammed Shia Al Sudani’s commitment to energy independence.

Despite being OPEC’s second-largest oil producer, Iraq relies on Iran for approximately one-third of its electricity, importing 50 million cubic meters of gas daily and 500 megawatts of electricity. In response to the US sanctions announcement, Mr. Al Sudani convened a meeting aimed at evaluating the upcoming summer electricity supply and advancing projects for gas reserve development. He has prioritized linking power stations to gas sources and establishing floating platforms for gas imports.

According to Iraqi Electricity Ministry spokesman Ahmed Moussa, the installation of floating platforms in Iraqi ports is essential for gas imports from alternative countries. Minister of Electricity Ziad Ali Fadel proposed a comprehensive plan to secure electricity supply alongside operational strategies for fuel stations. Additionally, Minister of Oil Hayan Abdul Ghani discussed strategies for fueling power plants, the quantities involved, and the implementation of floating and mobile gas platforms.

Iraq is nearing the completion of an agreement with Turkmenistan for importing 20 million cubic meters of gas via a pipeline through Iran. Furthermore, Iraq commenced electricity imports from Jordan via a 340-kilometer connection last March and aims to integrate with the Gulf Co-operation Council’s (GCC) power grid by the end of this year. Recently, US Charge d’Affaires Daniel Rubinstein met with Iraqi Parliament Finance Committee Head Atwan Al Atwani to assess the ramifications of US sanctions on Iraq’s electricity sector.

Iran’s Foreign Ministry has condemned the end of the sanctions waiver, categorizing it as “illegal” and accusing the US of imposing unjustifiable sanctions against Iran. Iraq has faced pressure from the US to cease its energy dependency on Iran due to sanctions initially imposed in 2018. While recent years have seen Iraq making strides to develop its natural gas resources and reduce electricity deficiencies, natural gas reserves are estimated at around 3,714 billion cubic meters.

In April of the previous year, Iraq entered into an agreement with the Ukrainian firm Ukrzemresurs to enhance production at the Akkas gasfield, aiming to escalate output from 60 million standard cubic feet per day (SCF) to 100 million SCF within two years and up to 400 million SCF in four years. Additionally, Iraq has established a $27 billion partnership with TotalEnergies for various oil, gas, and renewable energy projects, alongside commitments to several solar power initiatives.

In conclusion, Iraq is taking significant steps to address the anticipated electricity shortage exacerbated by the US cessation of sanctions waivers allowing Iranian energy imports. With plans to enhance energy independence, diversify energy sources, and develop domestic gas reserves, Iraq’s approach indicates a comprehensive response to the challenges posed by US sanctions. Through international partnerships, Iraq aims to strengthen its energy security while navigating complex geopolitical dynamics.

Original Source: www.thenationalnews.com