Iraq's electricity disrupted after Iran halts gas supplies

Iraqi Electricity Ministry says 4,000 to 4,500 megawatts of power have been ⁠lost ​as ‌a result

Pylons in Kirkuk, Iraq. The US ⁠rescinded a waiver ⁠that had allowed Iraq, which ⁠struggles with chronic power shortages, to pay Iran for electricity. AFP

Iraq’s Electricity Ministry ‍said on ⁠Tuesday that power production was disrupted after Iran completely halted the supply of gas.

"The flow of Iranian gas has completely stopped, resulting in a loss of between 4,000 and 4,500 megawatts from the electrical system," ministry spokesman Ahmed Moussa said in a statement carried by Iraq's state news agency.

Iran said it was due to "unforeseen circumstances", Mr Moussa added.

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He said electricity supply had been affected by the shutdown of some generating units and load-shedding at other power plants. The ministry was using domestically produced alternative fuels instead.

“There is co-ordination with the Ministry of Oil to meet local needs until the imported gas supply resumes,” he said. The electricity sector was preparing for peak winter loads at power stations, he added.

Iran supplies ⁠between 33 per cent ​and 40 per cent ‍of Iraq's gas and power needs. In 2023, Iraq reached an agreement to supply Iran with crude oil in exchange for gas, in a move aimed at assuring supply needed to run its electricity plants was met.

In March, US ⁠President ‌Donald Trump's administration rescinded a waiver ⁠that had allowed Iraq, which ⁠struggles with chronic power shortages, to pay Iran for electricity. The move was part of Mr Trump's "maximum pressure" campaign against Tehran.

Iraq has been facing a severe energy crisis for years due to political instability, a lack of investment in energy infrastructure and a generous subsidy system that provides electricity to Iraqis virtually for free, undermining the government's ability to cover costs. The result has been power shortages and widespread cuts, particularly during the summer.

Iraq is rich in oil and natural gas reserves but has struggled to capture gas associated with oil production, instead burning off or “flaring” vast amounts.

The US has pressured Iraq into reducing its dependence on Iranian gas and to seek alternative energy sources, such as solar, and to capture gas that would otherwise be flared.