Baghdad, Iraq- Iraq is working on six key energy diversification strategies to phase out its reliance on Iranian gas and electricity by 2028. This move is aimed at avoiding US sanctions and stabilizing the country’s power supply, according to The Cradle.
Prime Minister Mohammed Shia Al-Sudani stressed that Iraq’s shift away from Iranian energy is driven by economic priorities rather than political pressure. As part of this shift, Iraq has started importing gas from Turkmenistan through a swap arrangement using Iranian pipelines. This process is being facilitated by a Dubai-based energy firm.
Additionally, Iraq is boosting its LNG (liquefied natural gas) imports, primarily from Qatar, and has invited US companies to build an LNG terminal at the Grand Faw Port to meet its growing energy demand.
Currently, 80% of Iraq’s electricity generation depends on gas, with much of it sourced from Iran. However, despite agreements signed in 2022 and 2024 to increase gas and electricity imports from Iran, Iraq still faces supply disruptions due to Iran’s domestic shortages and renewed US sanctions under President Donald Trump.
To strengthen its power grid, Iraq connected its national electricity system to Turkey’s grid in July 2024, securing 300 megawatts of electricity for Nineveh, Saladin, and Kirkuk. At the same time, Iraq is pushing forward with a long-delayed power link to the Gulf Cooperation Council (GCC), with a 77-kilometer transmission line from Kuwait’s Al-Wafrah station to Basra’s Al-Faw station to improve the southern power supply.
Iraq is also working to reduce its reliance on imported gas by reducing gas flaring and increasing domestic gas production. The government has set a goal to lower flaring to 20% by 2025, down from 47% in 2021 and 33% in 2024. TotalEnergies and other international companies are supporting this effort. Meanwhile, Iraq is investing in new steam and gas power plants, expected to generate 35,000 megawatts of electricity.
