Iraqi Minister of Electricity, Ziyad Ali Fadel, revealed that energy import contracts are divided into two segments: one for electricity and another for gas. In a television interview, he noted that U.S. sanctions have affected the first phase related to Iraq importing electricity from Iran, while the situation regarding gas remains unclear.
He explained that the power lines subject to sanctions supply Iraq with "800" megawatts, serving Diyala and parts of Maysan and Basra.
#### A Hot Summer Ahead
The minister emphasized that Iraq would face a hot summer if U.S. sanctions include the import of gas from Iran. He also mentioned that Iraq, through its foreign ministry, is working on proposals to address potential issues arising from these sanctions.
Fadel pointed out that Iraq has relied on gas since the ministry signed contracts to establish gas stations in 2014. The shortfall in domestic gas production to meet power station needs has driven Iraq to import gas from Iran, with many central stations, particularly in Baghdad, dependent on this imported gas.
#### Gas Issues Left Unresolved for Years
The gas issue has been overlooked for years without resolution, and while the ministry moved to establish gas stations, gas availability was lacking. Fadel criticized previous ministry contracts, noting they obligate Iraq to pay investors fully if gas supply is interrupted. These past contracts reflected significant disarray, according to Fadel.
To address the gas supply crisis, the government instructed the federal oil ministry to establish a floating station for gas imports.
#### Ongoing Discussions with Washington
Talks are ongoing in Washington concerning whether Iranian gas will be included in the sanctions. The Ministry of Electricity has not received official directives about sanctions covering imported Iranian gas. Meanwhile, Washington has informed the central bank and TBI to stop connectivity with Iran entirely, although gas is still under discussion.
Since 2018, under President Donald Trump's administration, the U.S. has not extended the exemption allowing Iraq to purchase electricity from Iran, despite ongoing sanctions on Iran. Importing natural gas and electricity from Iran accounts for a third of Iraq’s energy needs.