Iraq’s exemption for gas and electricity imports from Iran was lifted on March 8, 2024, leading to significant concerns regarding the country’s energy supply, particularly during summer months. The Iraqi Economic Committee Chairman, Atwan Al-Atwani, met with U.S. Charge d’Affaires Daniel Rubenstein to discuss the implications of U.S. sanctions, while alternatives to Iranian energy are being explored, though immediate solutions remain challenging. Iraq’s dependence on Iranian imports complicates efforts towards energy security.
Iraq is currently navigating significant challenges following the lifting of its exemption for gas and electricity imports from Iran as of March 8, 2024. In this context, the Chairman of the Iraqi Parliament’s Economic Committee, Atwan Al-Atwani, met with U.S. Charge d’Affaires Daniel Rubenstein to address the potential catastrophic impacts this may have on Iraq’s electricity system, particularly during the summer months. Al-Atwani underscored the urgency of maintaining communication to enhance the bilateral relationship.
The U.S. Charge d’Affaires acknowledged Al-Atwani’s concerns, particularly relating to energy and banking sanctions, and assured him that he would relay these points to the U.S. government. He noted that, so far, sanctions have not extended to the import of natural gas, providing a semblance of assurance to Iraq. Both sides expressed hope for permanent solutions that would benefit both nations and improve Iraq’s energy security.
Under a recent agreement, Iran has committed to exporting 50 million cubic meters of gas per day to Iraq, amounting to a yearly valuation of six billion dollars. Additionally, Iraq established a five-year contract in July 2022 for purchasing 400 megawatts of electricity from Iran. While Iraq has made efforts to decrease its dependence on Iranian energy through alternative sources, such as an agreement with Turkmenistan and the construction of an LNG storage terminal potentially supplied by Qatar, immediate solutions remain distant.
Furthermore, Iraq is exploring connections to the Gulf Cooperation Council’s electricity grid and has signed a $27 billion contract with Total Energy for developing gas fields and enhancing oil production capabilities. However, officials indicate that the transition to these alternatives requires extensive investment and time, leaving Iraq reliant on Iranian gas in the short term. The assessment from Iraqi energy officials to Reuters emphasized that without immediate alternatives, Iraq faces severe challenges in meeting its electricity demands, particularly during peak seasons.
In light of these complexities, the Iraqi Ministry of Electricity has initiated urgent measures to mitigate the effects of the U.S. decision on Iraq’s power supply, as the nation grapples with ongoing energy dependence and the pressing need for alternative solutions.
In conclusion, the situation in Iraq regarding energy imports from Iran remains precarious, particularly with the recent lifting of exemptions. Despite efforts to establish alternative sources of energy, immediate solutions are lacking, leading to significant challenges for Iraq’s electricity supply, especially during high-demand periods. Continuous dialogue with the U.S. and potential agreements with neighboring countries may provide pathways to improved energy security; however, the country remains critically tied to Iranian gas imports in the short term.
Original Source: www.tehrantimes.com
