Drop of 4000 megawatts
Iraq faces power challenges as Iran halts gas exports
BAGHDAD — The Iraqi Ministry of Electricity disclosed that Iran has terminated its gas exports to Iraq, triggering a substantial decline in power generation across Baghdad and the central and southern regions of the nation. This cessation has led to a 4,000-megawatt drop in electricity production.
“The Ministry’s endeavors to refurbish and augment power production facilities are nearly complete, in anticipation of the summer’s electricity demand. Nonetheless, Iran’s cessation of gas exports to Iraq introduces an additional obstacle,” stated the Ministry of Electricity.
To counterbalance the shortfall of Iranian gas, the ministry has collaborated with the Ministry of Oil to secure alternative fuel sources for power stations in Baghdad and the central and southern regions of Iraq. These initiatives are designed to lessen the impact of the gas supply disruption on electricity generation.
The precise reasons behind Iran’s decision to halt gas exports remain unspecified. However, this is not the first occurrence. Iran has periodically ceased gas exports to Iraq under various pretexts.
Iraq depends on imported electricity and gas for its electricity generation plants, with annual electricity imports amounting to roughly 1,200 megawatts. Additionally, the country imports gas to operate its power generation stations.
In an effort to diminish its reliance on Iranian gas, Iraq has launched significant measures, including its fifth and sixth licensing rounds for oil and gas exploration and production. The sixth licensing round, announced in June 2023, focuses on the exploration and production of natural gas in 11 blocks, predominantly located in the western governorate of Anbar and the northern governorate of Nineveh. This initiative is geared towards fulfilling Iraq’s domestic gas requirements, particularly for power generation, as well as for the industrial, petrochemical, and fertilizer sectors. It also aims to enhance Iraq’s energy self-sufficiency and minimize the flaring of associated gas.
The fifth licensing round, centered on gas and experiencing delays, has been pivotal in Iraq’s strategy to mitigate gas shortages and reduce dependence on Iranian imports. The agreements signed under this round seek to expedite the development of gas assets to bridge the supply gap and strengthen Iraq’s energy independence.
Iraq’s reliance on Iranian gas for domestic electricity production has posed a significant challenge, with the country allocating approximately $4 billion annually to the import of Iranian gas and electricity. These imports are crucial for Iraq’s electricity generation plants, which heavily rely on external sources due to inadequate domestic gas production capacity.
Iraq's prime minister reviews electricity ministry's summer plan
Japanese Cooperation Agency to help rehabilitate electricity infrastructure in Iraq
