U.S. STOPS Natural Gas Pipelline from Turkey to Iraq Through Iran
Iraq tried to fix its severe electricity shortages by importing natural gas from Turkmenistan, but routing it through neighboring Iran. However, the deal didn’t go through because the U.S. refused to approve it, due to sanctions concerns with Iran.
The plan was for Turkmenistan to send about 5 billion cubic meters of gas each year to Iraq via Iran’s National Iranian Gas Company. Iran wouldn’t get paid in cash; instead, it would keep some of the gas (about 23% of the volume) for its own use. Baghdad also offered transparency measures — letting an international monitor check that the deal respected U.S. sanctions and anti-money laundering rules. (Reuters)
Despite these steps, the U.S. did not agree to the arrangement. Washington has been intensifying pressure on Iran over its nuclear activities and apparently sees the deal as one that would benefit Iran, which is problematic under current U.S. policy. Therefore, the contract is now suspended.
Iraq depends heavily on Iran for electricity and gas: in 2024, Iraq imported about 9.5 billion cubic meters of gas from Iran, which supplies nearly a third of its power generation. Without reliable imports, Iraq risks blackouts — especially during peak demand in summer.
Because the Turkmen deal fell through, Iraq is looking for other energy sources. Options include importing liquefied natural gas (LNG) from Qatar and Oman using floating terminals and expanding its domestic gas production with help from companies like TotalEnergies, BP, and Chevron..
