The Iraqi Energy Minister stated that it will take two years to increase domestic gas production and halt imports from Iran. Last month, the United States granted Iraq a 45-day exemption from Iranian sanctions to stop gas purchases from Tehran. However, reports indicate that following the cessation of Iranian gas exports to Iraq due to last week's earthquake in western Iran, Iraq faced widespread electricity outages in the capital and surrounding cities. The earthquake damaged Iran's sixth national pipeline, and gas exports to Iraq are still halted. On December 8, the Iraqi Ministry of Electricity announced the shutdown of 2.5 gigawatts of the country's power plants due to the interruption of Iranian gas exports. Tehran began selling gas to Baghdad last year and is preparing to export gas to Basra as well. On December 15, Reuters reported, citing Hayyan Abdulghani, the director of the Iraqi state gas company, that Iraq will not be able to manage without Iranian gas for the next two years. He stated in an interview that Iraq's gas production will reach 13.4 billion cubic meters annually by 2020, a 45% increase compared to current production. He mentioned that current gas production in Iraq does not meet the needs of the power generation sector, and it will take at least two years for Iraq's gas projects to develop. This Iraqi official further stated that Baghdad is seeking to extend the exemption from U.S. sanctions. In the spring of this year, Iraq signed a $367 million contract with the American company General Electric aimed at collecting 1.63 billion cubic meters of gas annually from oil fields. This project is set to be launched in the next two years. Iraq is also preparing for a new contract early next year aimed at producing 3.1 billion cubic meters of gas by the end of that year. Since 2013, Iraq, along with its foreign partners, has established the Basra Gas Company to prevent the flaring of associated gas in oil fields and to increase its production by collecting this gas. This company has managed to increase its annual gas production to about 9 billion cubic meters, nearly equal to Iraq's total gas production. Iraq burns and wastes more than 17 billion cubic meters of associated gas in oil flares annually, and the waste of gas in Iranian oil flares is similar.
Iraq: Two Years Needed to Stop Gas Purchases from Iran
Iraq's Energy Minister announced that it will take two years to stop importing gas from Iran while increasing domestic production. The U.S. has provided a temporary exemption from sanctions, but recent earthquakes have disrupted gas exports, leading to electricity shortages in Iraq. This situation highlights Iraq's dependency on Iranian gas and the challenges it faces in energy production.
👥 Key Players
📰 What Happened
Iraq's Energy Minister announced it will take two years to stop importing gas from Iran while increasing domestic production. Recent earthquakes in Iran have disrupted gas exports, leading to electricity shortages in Iraq.
- Iraq's current gas production does not meet its power generation needs.
- The U.S. has granted Iraq a temporary exemption from sanctions to continue gas imports from Iran.
💡 Why It Matters
📚 Background
Iraq has historically relied on Iranian gas for electricity generation, and efforts to boost domestic production have been slow. The region faces significant energy challenges, including gas flaring and supply disruptions.
🏷️ Entities Mentioned
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