Iraq’s electricity ministry announces complete halt of Iranian gas supplies

BAGHDAD – Iraq’s Ministry of Electricity announced on Sunday a complete cessation of Iranian gas supplies for 15 days, affecting Baghdad and the central and Middle Euphrates regions.

The stoppage, attributed to “maintenance work” on the Iranian side, has resulted in a loss of 5,500 megawatts from the national power grid. The Ministry urged citizens to conserve electricity during this period, citing circumstances beyond its control.

Iraq heavily relies on Iranian natural gas to fuel its power plants, with imports reaching up to 70 million cubic meters per day during peak summer months. This dependency accounts for approximately 40% of the country’s electricity supply, costing around $4 billion annually. However, these imports are often subject to disruptions due to sanctions and regional tensions, leading to frequent power shortages and highlighting the need for Iraq to diversify its energy sources.

In a statement, the ministry explained, “The Ministry of Electricity is implementing its strategic and emergency plans to enhance the capacity of the national power grid across all sectors (generation, transmission, and distribution). We are reviving long-stalled projects to recover unused generation capacity, aiming to improve production and ensure a stable power supply.”.

The Ministry clarified that electricity production relies partly on domestic gas, partly on domestic fuel, and partly on imported gas, pending the completion of government projects to rehabilitate national gas fields.

The Ministry highlighted the complete halt of Iranian gas supplies for maintenance, stating, “Gas supplies to Baghdad, the central region, and Middle Euphrates provinces have been entirely suspended for 15 days for maintenance purposes, as informed by the Iranian side. This has caused the grid to lose 5,500 megawatts.”.

It noted that Sunday’s expected gas supply of 25 million cubic meters per day was instead limited to 7 million cubic meters, which were diverted to southern Iraq.

To mitigate the impact, the Ministry says it is coordinating with the Ministry of Oil to compensate for the gas shortfall. Citizens were asked to reduce power consumption and manage loads responsibly until the maintenance is completed and gas supplies return to normal levels.

To reduce this reliance, Iraq is implementing several strategies. One key initiative is the development of infrastructure to capture and utilize associated gas—natural gas released during oil extraction—that is currently flared. Collaborations with companies like Siemens Energy and SLB aim to process this gas for domestic use, enhancing energy self-sufficiency. Additionally, Iraq is exploring agreements with other countries to diversify its gas imports. Notably, discussions with Turkmenistan have been underway to secure gas supplies, with plans to import 20 million cubic meters per day to bolster electricity production.