Iraq will phase out natural gas imports from Iran within three years, shifting towards domestic production and alternative electricity sources from neighboring countries, including Saudi Arabia and Jordan.
Prime Minister Mohammed Shia Al-Sudani confirmed that the decision to halt Iranian imports by 2028 is not influenced by external political pressure. “We are not under pressure from any country,” he told Aliqtisad News.
Iraq currently relies on Iranian gas to fuel its power stations, with an agreement for 50 million cubic meters per day. However, frequent supply disruptions—most recently in December due to increased Iranian domestic demand and maintenance work—have severely impacted Iraq’s power generation, leading to losses of nearly 9,000 megawatts.
To address the crisis, Iraq has been expanding its energy partnerships. It has signed agreements to import electricity from Saudi Arabia and Gulf states and secured an initial deal with Turkmenistan to import 20 million cubic meters of gas per day via Iranian pipelines.
The government has also prioritized domestic gas development. Over the past six months, Iraq has awarded contracts to TotalEnergies and other international firms to tap into its estimated 3.5 trillion cubic meters of gas reserves. A $27 billion deal with TotalEnergies is expected to add 600 million cubic feet per day to national production and curb the long-standing practice of flaring associated gas.
Energy expert Walid Khaddouri described the move as essential in tackling Iraq’s power crisis, one of the worst since the 2003 U.S.-led invasion. Despite investing at least $41 billion into its power sector, Iraq continues to struggle with chronic shortages, making diversification and self-sufficiency key priorities for the government.
