Iraq's bid for authorization to bring in Turkmen gas from Iran through imports was unsuccessful, according to the statement issued by the US.
In the heart of the Middle East, Iraq continues to grapple with a persistent power crisis that has plagued the country since the 2003 US-led invasion. The latest attempt to alleviate this issue, a proposed deal to import gas from Turkmenistan through Iran, has fallen through under US pressure, due to potential violations of US sanctions on Iran.
Over the past two years, Iraq has signed deals with global oil majors such as TotalEnergies, BP, and Chevron to speed up its gas projects. However, the lack of gas supplies from Iran, a crucial supplier, has led to a loss of about 3,000 megawatts of power generation. This deficit has had a profound impact on the daily lives of Iraqis, with many relying on expensive private generators to keep their businesses running.
Hussain Saad, a butcher shop owner in Baghdad, is one such individual struggling to protect his livelihood due to power shortages. The high costs of running a private generator have put a strain on his financial resources, and the inconsistent supply of electricity has led to the spoilage of his goods.
The proposed deal in 2023 would have seen Turkmenistan export gas to Iraq through Iran, but it risked violating US sanctions on Iran. Iraq sought US approval for months to import roughly 5 billion cubic meters of Turkmen gas via Iran, but it was never granted. Despite the country's ongoing power crisis, the deal has not been revived.
In response to the failure of the deal with Turkmenistan, Iraq is exploring alternatives to plug its power needs gap. One such option is building infrastructure to import liquefied natural gas (LNG) from Qatar. Iraq has also considered Iran and Saudi Arabia to fill the gap in its gas supply for electricity generation.
However, the US administration has doubled down on a 'maximum pressure' campaign against Iran over its nuclear plans, making it unlikely that Iraq will be able to secure gas supplies from Iran in the near future. This campaign has further complicated Iraq's efforts to provide power to its citizens, leaving many Iraqis to continue relying on expensive private generators to meet their energy needs.
As the power crisis persists, the lives of Iraqis like Hussain Saad remain at risk. The ongoing struggle for power is a stark reminder of the challenges Iraq faces in its quest for stability and self-sufficiency.
