Iraq is grappling with significant hurdles in securing its natural gas supply after the suspension of Iranian gas imports, according to Al-Anbar Provincial Council member Adnan Al-Kubaisi. The government had signed a contract with a Ukrainian company to invest in the Akkas gas field, the second-largest in the Middle East, but concerns have been raised about the firm’s ability to deliver on the project.
Al-Kubaisi pointed out that progress on the Akkas gas field project has been minimal, with only a few caravans set up at drilling sites over the past year. The head of the Ukrainian Chamber of Commerce has even questioned the firm’s ability to execute the project, despite a $50 million financial guarantee. He highlighted the economic importance of the project, noting that the revenues from the field are structured at $2 per 150 cubic meters of gas.
Akkas is also integral to plans for a combined-cycle power plant near the Syrian border, which is expected to generate up to 1,642 megawatts of electricity, contributing to energy supplies in both Al-Anbar and Iraq’s national grid. However, Al-Kubaisi emphasized the need for stronger government oversight and the involvement of experienced international firms to ensure the success of the project.
The energy sector faces additional pressure as the United States recently ended exemptions that allowed Iraq to import electricity from Iran. The US State Department reaffirmed its policy against granting economic or financial relief to Iran, heightening concerns over Iraq’s energy crisis. Walid Al-Sahlani, deputy head of the Iraqi parliament’s electricity committee, warned that Iraq could face an 8,000-megawatt deficit in its electricity grid during peak summer demand, further exacerbating the nation’s ongoing energy challenges.
As Iraq seeks to reduce its reliance on Iranian energy sources, securing a reliable and sustainable gas supply remains a critical issue for the country’s energy future. Without significant progress on domestic energy projects, Iraq’s electricity sector faces growing instability and potential unrest.