Baghdad: Iraq’s attempt to alleviate its chronic power shortages by importing natural gas from Turkmenistan through Iran has been blocked under U.S. pressure, leaving the country searching for alternative energy solutions. The move highlights the persistent struggle of oil-rich Iraq to provide reliable electricity to its citizens, decades after the 2003 U.S.-led invasion that disrupted its infrastructure. Many Iraqis continue to rely on costly private generators, adding economic stress and fueling public frustration.
The proposed deal, first introduced in 2023, envisioned Turkmenistan supplying roughly 5 billion cubic meters (bcm) of natural gas annually to Iran, which would then transfer the gas to Iraq. Under the agreement, Iran would not receive payment but could use a small portion around 23% for its domestic needs. Baghdad also suggested international oversight to ensure compliance with U.S. sanctions and anti-money laundering regulations. Despite months of lobbying, Washington refused approval, citing potential benefits to Iran that would violate sanctions.
Iraq’s dependence on Iranian gas has long been significant, accounting for nearly a third of its electricity generation. The suspension of this deal now exacerbates Baghdad’s delicate balancing act between its two primary allies: Washington and Tehran. Officials warn that moving forward with the Turkmen-Iran gas swap could trigger sanctions on Iraqi banks and financial institutions, further complicating the country’s energy management.
In response, Iraq is exploring alternatives, including importing liquefied natural gas (LNG) from countries like Qatar and Oman and boosting domestic gas production in collaboration with international companies. The ongoing situation underscores the broader geopolitical challenges Iraq faces in securing energy stability while navigating U.S.-Iran tensions.
Citizens like Hussain Saad, a butcher in Baghdad, underscore the human impact of the energy shortfall. “This isn’t just my suffering it’s the suffering of the entire Iraqi people,” he said, reflecting the daily hardships faced by millions relying on limited electricity.
As Iraq seeks a path forward, the international community continues to watch, understanding that the country’s energy strategies have implications not only for domestic stability but also for regional energy security.