Iraq accelerates Gulf gas imports as US ends Iran energy waivers

Shafaq News/ Iraq is shifting to Gulf gas imports to replace Iranian supplies after the expiration of US sanctions waivers, while also fast-tracking a major gas pipeline project in Basra, Parliament's Oil ane Gas Committee said Sunday.

On March 8, 2025, the US waiver allowing Iraq to buy Iranian gas expired, blocking Baghdad from continuing its reliance on Tehran for power generation.

Commitee spokesperson Ali Shaddad told Shafaq News that Iraq’s electricity sector faces challenges because many power plants depend solely on gas. However, Basra’s plants operate on gas, crude oil, and heavy fuel, ensuring greater grid stability.

Shaddad revealed that Prime Minister Mohammed Shia Al-Sudani is personally overseeing the rapid completion of a gas pipeline from Basra’s floating platform, a project launched 30 days ago by the Oil Ministry.

"The pipeline is progressing at an accelerated pace and is expected to be completed within 120 days," he said, noting that 30% of the work is already done.

Once operational, the pipeline will transport up to 200 million standard cubic feet per day (mmscf/d) of Gulf gas to Iraq’s power grid.

On Sunday, the US State Department formally ended Iraq’s special exemptions that had allowed Baghdad to purchase Iranian electricity.

For years, Iraq has relied on Iranian gas and electricity imports, especially during peak summer demand, benefiting from periodic US waivers issued multiple times a year.

In October 2024, Iraq signed a deal with Turkmenistan to import 20 million cubic meters of gas per day via Iranian pipelines using a swap mechanism. However, implementation has stalled due to technical issues, according to Iraq’s Ministry of Electricity.