Iraq is preparing to manage the loss of Iranian gas following the decision by the United States to end the country’s exemption. The US State Department officially ended Iraq’s special exemption for importing electricity from Iran on Sunday. This development comes as a major challenge for Iraq’s energy sector, which has long relied on Iranian gas imports.
The Ministry of Electricity in Iraq warned that the loss of Iranian gas could reduce the country’s power output by over 8,000 megawatts. This would significantly strain Iraq’s already fragile electricity grid. However, ministry spokesperson Ahmed Al-Abadi assured that the government has developed a comprehensive plan to avoid supply disruptions, particularly as summer approaches.
“The plan includes addressing network bottlenecks, establishing new feeders, and installing new power stations,” said Al-Abadi. He also mentioned that over 540 government buildings would switch to solar energy systems, with one-third of them ready before the summer months. This initiative aims to reduce the strain on the national grid and lessen reliance on traditional power sources.
To compensate for the gas shortage, Iraq’s Ministry of Oil plans to import about 600 million standard cubic feet of liquefied gas through floating platforms at Iraqi ports. These imports are expected to generate around 4,000 megawatts of power before next summer. Additionally, Iraq is looking to the Gulf electrical interconnection project to provide an extra 500 megawatts by June. Enhanced connections with Jordan and Turkey will also help boost generation capacity.
“Iraq is committed to stabilizing the energy system,” Al-Abadi emphasized. The government has also taken steps to ease the demand on the national grid, including offering loans to citizens for installing solar energy systems. This initiative aims to reduce the pressure on Iraq’s power infrastructure.
On Sunday, Iraqi Prime Minister Mohammed Shia Al-Sudani and US National Security Advisor Michael Waltz discussed ways to address the termination of the US waiver. Waltz linked the move to the US “maximum pressure” policy targeting Iran’s nuclear ambitions and regional influence.
For years, Iraq has relied heavily on Iranian electricity and gas, particularly during the peak summer months. In October 2024, Iraq signed a deal with Turkmenistan to import 20 million cubic meters of gas per day through Iranian pipelines. However, technical challenges have delayed its implementation.
In conclusion, Iraq is taking significant steps to address the loss of Iranian gas. These measures aim to stabilize the country’s energy system, reduce reliance on foreign energy, and ensure a steady power supply for the coming months.