Iraq criticizes Iran's gas supply cuts, citing contract violations

Iraq criticizes Iran's gas supply cuts, citing contract violations
2024-12-01T09:55:29+00:00

Shafaq News/ On Sunday, an Iraqi official condemned Iran’s decision to drastically reduce gas supplies as “unilateral, sudden, and in violation of the bilateral agreement.” The Ministry of Electricity announced that it reserves its full contractual rights and has demanded Iran's immediate adherence to agreed terms.

The official revealed that “Iran recently cut its gas exports to Iraq from 25 million cubic meters per day to a mere six million cubic meters, far below the contractual obligation of 50 million cubic meters during peak winter and summer periods. This abrupt reduction has led to a loss of approximately 6,000 megawatts from Iraq's national power grid.”

“Despite our efforts to improve electricity production and diversify sources, the national grid is under strain due to this unexpected action,” the official stated.

To stabilize the electrical grid, the Ministry of Electricity has implemented emergency measures, including intensified coordination with the Ministry of Oil to pump additional alternative fuel and accelerate national gas investment projects. High-level talks with Iran are ongoing to demand compliance with the agreement.

Since the 1990s, Iraq has faced persistent electricity shortages, with private generators filling the gaps left by insufficient national production. Imports from Iran account for up to 40% of Iraq’s energy needs, but sanctions-related payment restrictions have complicated these transactions.

Iran's gas supply instability has cost Iraq over 4,000 megawatts in recent months, compounded by disrupted cross-border connection lines.

On the other hand, the US continues to pressure Iraq to reduce its dependence on Iranian gas. In response, Iraq has been pursuing regional alternatives. In August 2023, Baghdad signed a preliminary agreement with Turkmenistan to import gas as part of efforts to secure sustainable energy for power stations. Additionally, Iraq is working on electricity connection projects with neighboring countries to mitigate reliance on fuel-dependent power generation.

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