Iraq Pursues Alternatives to Iranian Gas Amidst Sanctions and Energy Needs

Iraq is exploring alternatives to Iranian gas imports to reduce reliance on Iran amid rising U.S. sanctions. The government, led by Prime Minister Mohammed Shia al-Sudani, is pursuing suppliers in the Gulf region while establishing LNG terminals for enhanced energy capacity. The energy situation remains crucial, as the country faces significant electricity shortages and needs to address its infrastructure challenges.

Iraq is actively seeking alternatives to its reliance on Iranian gas imports due to heightened tensions and new U.S. sanctions affecting its energy supply agreements. According to government officials, the country is exploring options in the Gulf region to diversify its energy sources. Saad Jassem from Iraq’s electricity ministry stated, “Previously, we only had imports from Iran, but there are government directives and a political will to rely on multiple sources of imports.”

Although the U.S. has ceased its sanctions waiver allowing Iraq to procure electricity from Iran, gas imports remain unaffected for the time being. Officials report that Iranian gas and electricity contribute significantly to Iraq’s energy needs, accounting for approximately one-third of its total consumption. Jassem emphasized the need for alternatives, highlighting Qatar as a potential supplier offering preferential rates, alongside Oman and Turkmenistan as additional options for gas procurement.

To bolster its energy capacity, Iraq is set to establish two floating liquefied natural gas terminals in Khor al-Zubair, anticipated to commence operations by June. These terminals are expected to process up to 19 million cubic meters per day, with a potential third unit enhancing capacity significantly. Jassem noted, “The question of energy is vital for citizens: cutting off gas would mean a significant reduction in electricity supply.”

The ongoing complexity of Iraq’s relationship with Iran and the United States complicates its energy strategy. Prime Minister Mohammed Shia al-Sudani’s administration aims for self-sufficiency by halting gas flaring in oil fields by 2028, redirecting that gas for electricity generation. Despite renewing a five-year gas import agreement with Iran in 2024 for up to 50 million cubic meters daily, actual deliveries have declined to around 15 million cubic meters.

In conclusion, Iraq is committed to reducing its dependence on Iranian gas through diversification strategies and the establishment of new energy supplies. The challenges posed by U.S. sanctions and the ongoing energy crisis necessitate urgent action to secure alternatives for its electricity needs. With planned infrastructure developments, Iraq aims to achieve energy self-sufficiency while addressing the critical issue of power supply for its citizens.

Original Source: www.newstopicnews.com