Iraq Plans Gas Import Terminals Amid Tighter U.S. Sanctions on Iran | OilPrice.com
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Breaking News:
Iraq is negotiating the procurement of two floating regasification terminals as it seeks to replace gas supply from Iran with alternatives amid a renewed U.S. sanction push against Tehran.
Bloomberg reports that the government in Baghdad was seeking to cover up to 50% of domestic gas demand during peak times, with the rest coming from local gas production. The regasification terminals will be installed at the port of Basra, according to oil minister Hayyan Abdul Ghani.
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Iran is the main source of import gas for Iraq—and import electricity as well. However, earlier this month the U.S. government refused to extend a sanction waiver allowing Iraq to keep buying Iranian electricity to supplement local generation. The expiry of the sanction waiver could also motivate oil field operators in Iraq to put more effort into reducing gas flaring and using the gas for power generation instead.
President Trump restored the “maximum pressure” campaign on Iran via a National Security Presidential Memorandum at the start of February with a view to relaunching negotiations on a new nuclear deal.
In the memo, President Trump directed the Secretary of State to modify or rescind sanctions waivers, particularly those that provide Iran any degree of economic or financial relief, including those related to Iran’s Chabahar port project.
The Secretary of State shall also “implement a robust and continual campaign, in coordination with the Secretary of the Treasury and other relevant executive departments or agencies, to drive Iran’s export of oil to zero, including exports of Iranian crude to the People’s Republic of China,” per the presidential memorandum.
The “maximum pressure” campaign wasn’t unexpected, considering that President Trump has said he would pursue such a policy with Iran. Iran, for its part, has warned that this campaign will destabilize the global oil market and ultimately hurt consumers.
By Charles Kennedy for Oilprice.com
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