A US proposal to “impose a timetable” on Iraq to get rid of Iranian gas
A US proposal to “impose a timetable” on Iraq to get rid of Iranian gas
2025-10-31 09:33
Shafaq News – Special Translation
The American “Foundation for Defense of Democracies” praised Iraq’s steps, albeit slow, to wrest its energy sector from Iranian influence, calling on the United States to encourage Baghdad in this regard, but also demanding that Washington set a short timetable for Iraq to stop importing Iranian gas.
Initially, the American Institute report , translated by Shafaq News Agency, stated that the American company “Excelerate Energy” announced an agreement with Iraq on October 28 to establish the first floating natural gas terminal in Iraq, in Khor Al-Zubair in the Gulf, which will represent the first direct access for Iraq to import natural gas from global markets, in addition to the company also working as a supplier of liquefied gas for the project.
After the report noted that the investment is valued at approximately $450 million for a period of 5 years with the possibility of extending it over time, it recalled what the US Embassy in Baghdad said: “This project constitutes a crucial step towards Iraq’s energy independence from Iran, which enhances Iraq’s sovereignty and provides prosperity.”
The report considered Iraq’s energy independence from Iran to be an important element in the maximum pressure campaign adopted by the Donald Trump administration against Tehran, noting that despite Iraq’s status as the second largest oil producer in OPEC and its large natural resources, it depends on Iranian energy resources to operate its electricity grid.
According to the report, Iraq has purchased $4-5 billion worth of gas annually from Iran in recent years, generating between 30% and 40% of Iraq’s electricity needs. The report also stated that Iraq signed a five-year deal in March 2024 to purchase additional gas from Iran, but Iranian gas exports to Iraq declined by approximately 40% between April and August of this year.
He added that despite combining Iraq’s imports from abroad with its own internal resources, these resources often do not meet local needs, noting that the difficulties Iran faces in meeting its domestic energy demand hinder its ability to reliably export gas, especially during peak times, such as the hot summer months, which leads to power outages throughout Iraq.
In order to remove Iranian influence from Iraq’s energy sector, the report said that Iraq has made deals with international energy companies to develop local infrastructure and expand energy imports, allowing it to bypass Iran.
However, the report indicated that Iranian gas imports do not represent the only challenge for Iraq in the energy sector, explaining that Iraq flares about 30% of the gas produced from its oil fields, a practice that reflects waste and damage to the environment, as infrastructure and technology constraints make Iraq unable to exploit all of its natural resources. However, it noted that the Iraqi government plans to reduce gas flaring by attracting investments to develop the necessary infrastructure to capture and use gas to meet domestic demand.
After noting that the Trump administration in March revoked a sanctions waiver dating back to the Joe Biden era that allowed Iraq to purchase Iranian electricity, the report explained that this waiver allowed Iran access to $10 billion in previously frozen gas revenues, which indirectly boosted Iran’s “malign activities” at home and throughout the region.
He pointed out that despite the cancellation of the exemption that allowed Iraq to purchase Iranian electricity, the US administration still allows the import of Iranian gas, arguing that instead, Washington must set a short timetable for Iraq to stop importing Iranian gas and replace the supplies it needs from sources not subject to sanctions.
According to the American Institute, American companies can support energy diversification in Iraq by investing in and developing Iraqi infrastructure. Investments in projects such as the Khor Al-Zubair gas plant, owned by “Excelerate,” would enhance Iraq’s ability to import gas without relying on Iran.
shafaq.com
