Iraq is intensifying efforts to mitigate an expected electricity shortage after the U.S. withdrew a waiver that allowed electricity and gas imports from Iran. Prime Minister Al Sudani has initiated several energy projects to secure electricity supply and improve gas imports. Iraq aims for energy independence through collaborations with neighboring countries and investment in domestic energy development.
Iraq is urgently addressing its expected electricity shortage this summer following the cessation of a U.S. waiver that permitted it to import electricity from Iran amid sanctions. The U.S. administration withdrew the waiver, emphasizing its campaign to mitigate Iran’s nuclear threats and support for terrorism. The U.S. embassy in Baghdad underscored the need for Iraq to achieve energy independence by reducing its reliance on Iranian energy sources.
Despite being the second-largest oil producer in OPEC, Iraq relies on Iran for approximately one-third of its electricity needs, importing 50 million cubic meters of gas and 500 megawatts of electricity daily. Following the U.S. announcement, Prime Minister Mohammed Shia Al Sudani convened a meeting to analyze the electricity supply situation for the upcoming summer and ongoing projects to enhance gas reserves.
Prime Minister Al Sudani has decided to advance various energy initiatives, including connecting power stations to gas sources and installing floating platforms for gas imports. Ahmed Moussa, spokesperson for the Iraqi Electricity Ministry, praised the installation of floating platforms as vital for the country’s gas importation efforts. Furthermore, Minister of Electricity Ziad Ali Fadel outlined a plan to ensure the electricity supply along with the operational framework for fuel stations.
Minister of Oil Hayan Abdul Ghani highlighted the ministry’s strategy to provide fuel for power plants. Iraq is finalizing an agreement with Turkmenistan to import 20 million cubic meters of gas daily through a pipeline that traverses Iran. Additionally, Iraq has begun importing electricity from Jordan via a 340-kilometer line established last year and plans to connect to the Gulf Co-operation Council (GCC) power grid by the end of 2023.
On Sunday, U.S. Charge d’Affaires Daniel Rubinstein discussed the ramifications of U.S. sanctions on Iraq’s electricity sector with the head of the Iraqi Parliament’s Finance Committee. Mr. Rubinstein noted that the current sanctions do not cover the importation of natural gas. In response, Iran’s Foreign Ministry condemned the decision to end the sanctions waiver, claiming it exemplifies lawlessness and has no legal justification.
Baghdad has faced sustained pressure from the U.S. to reduce its dependency on Iranian energy, which has been subject to sanctions since 2018. Historically, Washington has offered temporary waivers to allow Iraq to import Iranian electricity and gas. Iraq has also begun initiatives to enhance its natural gas resources, aiming to alleviate the longstanding energy shortfalls in its electricity sector. The Oil Ministry estimates Iraq’s natural gas reserves at approximately 3,714 billion cubic meters.
In April of last year, Iraq entered a contract with the Ukrainian company Ukrzemresurs to develop the Akkas gasfield, targeting a production increase from 60 million standard cubic feet per day (scfpd) to 100 million scfpd within two years, eventually reaching 400 million scfpd in four years. Moreover, Iraq is collaborating with TotalEnergies on a $27 billion project aimed at developing oil, gas, and renewable energy sectors, alongside various solar power ventures with other companies.
Iraq is actively pursuing measures to counteract the impending electricity deficit due to the ending of a U.S. waiver for Iranian energy imports. The government has initiated diverse energy projects, focusing on enhancing gas imports and securing electricity supply independence. As it strives to exploit its own energy resources and develop partnerships for sustainable energy solutions, Iraq aims to transition away from reliance on Iranian energy and enhance its domestic electricity production capabilities.
Original Source: www.thenationalnews.com
