Iraq Seeks Arab Alternatives to Buy Gas and Replace Iranian Supplies
Iraq is exploring new options to secure gas supplies from Arab nations like Qatar and Oman as a substitute for Iranian imports. This shift comes in response to U.S. efforts to block Iraq’s electricity imports from Tehran, signaling potential future restrictions on gas trade as well.
On Monday, the head of Iraq’s “South Gas Company” revealed that Baghdad is considering Qatar and Oman as viable alternatives for gas purchases. This move follows the U.S. decision to tighten sanctions on Iran, with a U.S. State Department spokesperson confirming that the administration of President Donald Trump canceled a sanctions waiver on Saturday. This waiver had allowed Iraq to pay for electricity imports from Iran since 2018, despite Washington’s ongoing “maximum pressure” policy against Tehran.
Gas Trade at the Core of Iraq-Iran Relations
While electricity trade has been affected, the larger cross-border commerce between Iraq and Iran revolves around gas. Currently, Baghdad imports approximately 50 million cubic meters of gas daily from Iran, depending on its needs. This arrangement operates under a five-year agreement extension signed in March 2024.
According to Iraqi energy officials, Baghdad pays between $4 billion and $5 billion annually to Iran for gas imports. However, Iraq’s Minister of Electricity warned that losing these gas imports could reduce the country’s daily electricity production by about a third, from its current output of 27,000 megawatts.
Why Iraq is Turning to Arab Nations
The potential disruption of Iranian gas supplies has prompted Iraq to seek more stable and geopolitically safer alternatives. Both Qatar and Oman, known for their significant gas reserves and strategic positions in the Gulf, are emerging as key contenders to meet Iraq’s energy demands.
This transition aligns with broader regional dynamics and Iraq’s efforts to diversify its energy sources while navigating international pressures. By reducing reliance on Iran, Iraq aims to safeguard its energy security and maintain steady electricity production for its population.
