Iran has restarted the exports of natural gas to its neighbor Iraq despite U.S. opposition to the exchange, which last year led to the cancellation of these supplies.
The daily rate of exports is 7 million cu m, Reuters reported, citing a spokesman for Iraq’s electricity ministry. The spokesman also said ministry officials plan to travel to Tehran to discuss future gas supplies as well.
In December 2025, the Iraqi electricity ministry said it had suspended all purchases of Iranian natural gas, adding that this had immediately knocked between 4,000 and 4,500 megawatts off the national power grid.
The suspension was part of a gradual process for reducing dependence on energy imports from Iran, with the blessing of the United States. Iranian supplies had been covering roughly 30 to 40 percent of Iraq’s power generation needs. Those volumes had already been diminishing due to payment disputes, U.S. sanctions pressure, and Iran’s own domestic shortages.
This week’s news suggests that it has been challenging to replace Iranian gas imports with local energy use or alternative imports. The details about negotiations regarding summer demand for electricity reinforce this perception: summer is peak electricity demand season for much of the Northern hemisphere, notably the Middle East.
If the Iraqis are willing to negotiate more gas supply from Iran just two months after announcing the suspension of these imports, then energy security considerations have resurfaced as a big priority.
Interestingly, Iraq has plenty of its own gas, coming from the oil wells as associated gas. Unfortunately, most of this gas is flared at the oil fields rather than captured, processed, and utilized. The most obvious reason is the amount of money that needs to get invested in the necessary infrastructure. TotalEnergies is one of those investing in Iraq’s gas with the goal of eventually supplying this gas to power generators in the country.
By Irina Slav for Oilprice.com
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