Iraq Scrambles for Backup Fuels After Iran Halts Gas Exports
Iraq’s electricity sector took a sharp hit this week after Iran abruptly halted natural-gas exports that help keep Iraqi power stations running, forcing Baghdad to scramble for substitute fuels and brace for fresh outages.
The Iraqi Electricity Ministry said Tuesday that the cutoff has already knocked out roughly 4,000–4,500 megawatts of generation capacity—an enormous gap for a grid that routinely strains under peak demand. In a Facebook post, the ministry said Iran informed Iraq the suspension was due to “emergency circumstances.”
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Officials said the Electricity Ministry is coordinating with the Iraqi Oil Ministry to switch many plants to domestic alternative fuels so they can keep operating, at least partially, despite the shortfall. That workaround can help in the near term, but it is rarely seamless: fuel substitutions can reduce efficiency, raise costs, and limit output—especially for facilities designed around steady gas feedstock.
The disruption lands in a country still wrestling with the legacy of war, underinvestment, and infrastructure decay. Iraq has endured chronic power shortages for years, and frustration over blackouts has periodically spilled into street protests, especially during punishing summer heat when air-conditioning becomes a necessity rather than a luxury.
Iranian supplies have been interrupted before—often blamed on technical problems, maintenance, or payment disputes—yet Iraq remains dependent on the imports to stabilize its grid.
The episode also unfolds under tighter US sanctions enforcement. Since 2018, Washington repeatedly issued waivers allowing Iraq to keep buying Iranian energy. In March, the US ended a waiver that permitted Iraq to import electricity directly from Iran, while maintaining the exemption for Iranian natural gas—leaving Baghdad squeezed between energy reality and geopolitical constraint.
