Oil & Gas Iranian gas supplies to Iraq fall in May By Nadim Kawach May 23, 2025, 12:54 PM Reuters/Mohammed Any A gas facility in Basra. Iraq is under pressure from the US to reduce gas imports from Iran Threat to power generation Iraq under US pressure Gulf imports up Iranian gas exports to Iraq have fallen by more than half this month, causing a shortfall of nearly 3,500 megawatts (MW), sufficient to power about two and a half million homes, according to local media. Supplies so far in May have plunged from 45 million cubic metres per day (mcmd) contracted by Baghdad to 20 mcmd, Iraq’s electricity ministry said in a statement published in the local Al Eqtesad News, warning that the situation is likely to worsen in the coming peak summer season. The ministry said that the electricity network will lose nearly 5,300MW over the summer, when Iranian gas supplies are supposed to reach 55 mcmd under a long-standing contract. Iraq’s power facilities are heavily reliant on Iranian gas given limited domestic production capacity. Baghdad is also coming under pressure from Washington to reduce reliance on Iran as the Trump administration seeks to renew a policy of maximum pressure on the regime in Tehran. Under the supply contract, Iran is committed to export 50 mcmd of gas and 10 gigawatts of electricity to Iraq. Abu Dhabi VC EQIQ to increase Iraq tech investments Dana Gas to spend $100m on Egypt and Iraq expansion Masdar’s Iraq solar power projects gain traction after long delays Saad Fraih, head of the fuel section at the electricity ministry, said Iraq is taking steps to offset the shortage, including using gas oil to operate power facilities and importing gas from the Gulf and other countries via offshore terminals. Iraq currently has a power generation capacity of just over 20 gigawatts (GW) but actual needs are far above 30GW. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
