ERBIL, Kurdistan Region - Baghdad owes Tehran around $2 billion for natural gas imports while continuing to receive only half of the gas volumes agreed under a long-term supply contract, an Iraqi energy expert said Tuesday, as Iraqi dependence on Iranian energy persists despite US sanctions.
Ahmed Musa al-Abadi, an energy expert and former spokesperson for Iraq's Ministry of Electricity, told Rudaw's Nahro Mohammed that Iraq has accumulated significant unpaid debts to Iran for previous gas imports.
"Iraq currently owes Iran two billion dollars for gas purchases, but it cannot repay the debt due to sanctions on Iran," he said.
Iraq remains heavily dependent on Iranian gas to fuel its power plants despite frequent disruptions and inconsistent supply. Iran has repeatedly reduced or suspended exports during winter months to prioritize domestic demand amid attacks on its energy infrastructure following the US-Israeli military campaign launched against Iran late February.
Iraq's agreement with Iran calls for the delivery of 50 million cubic meters of natural gas per day, enough to support roughly 30 percent of the country's electricity generation.
However, Abadi told Rudaw that imports remain at half of the contracted levels.
"Currently, only 25 million cubic meters of Iranian gas are arriving, providing fuel for a portion of the power stations. Twenty million cubic meters are designated for central Iraq and the other five million for the south," Abadi said. The current volume marks a slight increase from recent weeks after Iran increased supplies by five million cubic meters per day.
Of note, Iran previously exported electricity directly to Iraq through four transmission lines with a combined capacity of between 1,000 and 1,200 megawatts, which “have been halted for more than a year due to US sanctions on Iran," Abadi said.
Since 2018, Washington has pushed Baghdad to reduce its dependence on Iranian gas and electricity, periodically issuing sanctions waivers that allowed Iraq to continue importing Iranian energy. Meanwhile, Iraq has sought to develop domestic gas production by recapturing flared gas while also exploring imports from Jordan, Turkey and Turkmenistan.
The comments come as Baghdad continues to adjust its energy policy in response to US sanctions on Iran. Last month, Iraq's oil ministry said it would comply with US-imposed restrictions on Iranian oil exports and instead rely on alternative import routes to ease gasoline shortages.
"To resolve the outstanding gasoline issue, Iraq will import oil through SOMO [State Oil Marketing Organization]," oil ministry spokesperson Salim al-Rukabi told Rudaw, adding that Baghdad remains committed to the "decision regarding the sanction on Iran."
Iraq's gasoline shortages intensified after the US-Israel war against Iran disrupted refinery operations in southern Iraq, prompting the withdrawal of foreign companies and limiting prospects of investment.
Iraqi officials said the shutdown of the Fluid Catalytic Cracking (FCC) project in Basra cut production of premium gasoline by 4 to 5 million liters per day.
The disruption reversed Iraq's earlier declaration of self-sufficiency in refined fuel, forcing Baghdad to seek alternative supplies while maintaining subsidized domestic fuel prices.
