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Iraq is pursuing six energy diversification strategies to phase out Iranian gas and electricity imports by 2028 so that it avoids US sanctions.
EU PVSEC 2025
Iraq has begun importing gas from Turkmenistan through a swap arrangement using Iranian pipelines.
In addition, Iraq is expanding its capacity to import LNG, primarily from Qatar, and has invited companies to build an LNG terminal at the Grand Faw Port to support growing demand.
Around 80 per cent of Iraq’s power generation is dependent on gas, most of which is from Iran. Iraq is facing supply disruptions due to Iran’s domestic shortages and renewed US sanctions imposed by US President Trump.
Iraq has connected its grid to Türkiye’s network via a 115 km transmission line. This secures 300 MW for Nineveh, Saladin, and Kirkuk. In addition, Iraq is continuing to develop a 77 km transmission line from Kuwait’s Al-Wafrah station to Basra’s Al-Faw station in order to improve power supply in the south of the country.
Iraq is also working to reduce its reliance on imported gas by curbing gas flaring and boosting domestic production. The government aims to lower flaring to 20 per cent by 2025, down from 47 per cent in 2021 and 33 per cent in 2024.