The Iraqi government is working to reduce its dependence on Iranian gas as a major source of energy.
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The Iraqi government is working to reduce its dependence on Iranian gas as a major source of energy.
This step comes in response to international pressure, especially the US sanctions imposed on Iran, and in order to achieve greater independence in the energy sector. Iraq relies heavily on Iranian gas imports to operate power plants, as the percentage of gas imports from Iran reaches more than 40 per cent of its daily energy needs.
In March 2024, Iraq signed a contract with Iran to increase Iranian gas imports to 50 million cubic metres per day for five years, at an annual value of about $6 billion. Despite this, Iraq suffers from continuous power outages, increasing the need to find effective alternatives. For its part, the Iraqi Ministry of Oil revealed its plan to increase gas production.
Oil Minister Hayyan Abdul Ghani said in a press statement on Friday: “Today, Iraq imports gas from Iran and costs the state large sums of money, in addition to the fact that this gas cannot be sustained due to the special circumstances of neighbouring Iran, as it may sometimes be cut off or its quantities reduced. This is reflected in the generation of electricity.”
He pointed out that the TotalEnergies project in southern Iraq will be a major achievement, as well as the Basra Oil Company and the South Gas Company, as it will invest in the gas that is currently being burned, adding that “in 2025, investment in low-pressure gas will begin, which is a heavy gas that causes pollution when burned, but the investment process needs more than a year, so this project will be implemented in stages.”
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