Monday, March 10, 2025
Iraq accelerates Gulf gas imports as US ends Iran energy waivers, 10 MARCH
Iraq accelerates Gulf gas imports as US ends Iran energy waivers
Shafaq News/ Iraq is shifting to Gulf gas imports to replace Iranian supplies after the expiration of US sanctions waivers, while also fast-tracking a major gas pipeline project in Basra, Parliament's Oil ane Gas Committee said Sunday.
On March 8, 2025, the US waiver allowing Iraq to buy Iranian gas expired, blocking Baghdad from continuing its reliance on Tehran for power generation.
Commitee spokesperson Ali Shaddad told Shafaq News that Iraq’s electricity sector faces challenges because many power plants depend solely on gas. However, Basra’s plants operate on gas, crude oil, and heavy fuel, ensuring greater grid stability.
Shaddad revealed that Prime Minister Mohammed Shia Al-Sudani is personally overseeing the rapid completion of a gas pipeline from Basra’s floating platform, a project launched 30 days ago by the Oil Ministry.
"The pipeline is progressing at an accelerated pace and is expected to be completed within 120 days," he said, noting that 30% of the work is already done.
Once operational, the pipeline will transport up to 200 million standard cubic feet per day (mmscf/d) of Gulf gas to Iraq’s power grid.
On Sunday, the US State Department formally ended Iraq’s special exemptions that had allowed Baghdad to purchase Iranian electricity.
For years, Iraq has relied on Iranian gas and electricity imports, especially during peak summer demand, benefiting from periodic US waivers issued multiple times a year.
In October 2024, Iraq signed a deal with Turkmenistan to import 20 million cubic meters of gas per day via Iranian pipelines using a swap mechanism. However, implementation has stalled due to technical issues, according to Iraq’s Ministry of Electricity.
CRYPTO TRADER : Central Bank: Comprehensive digital transformation in the financial sector is coming soon, 10 MARCH
CRYPTO TRADER
#IQDCentral Bank: Comprehensive digital transformation in the financial sector is coming soon.
The timing of the announcement is interesting.
US calls on Iraq to stop relying on Iranian energy supplies, 10 MARCH
US calls on Iraq to stop relying on Iranian energy supplies
Baghdad (IraqiNews.com) – The spokesperson of the US Department of State, Tammy Bruce, said on Thursday that the US administration is urging the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible.
During a press briefing, Bruce added that the US administration welcomes the Iraqi prime minister’s commitment to achieve energy independence.
In terms of the Iraq sanctions waiver for Iran gas imports that expired on March 8, Bruce explained that the US administration is reviewing all existing sanctions waivers that provide Iran any degree of economic or financial relief.
In December, the United States extended a 120-day waiver that permits Iraq to pay Iran for energy imports.
The United States is trying to lessen Iran’s influence in the region, believing that a safe, sovereign, and stable Iraq is essential to these endeavors, according to the principal deputy spokesperson of the US State Department, Vedant Patel.
Since 2018, the US State Department has allowed Iraq to buy power from Iran while it continues to build up its own domestic generation capacity.
Tehran can only use the funds for non-sanctionable transactions, such as purchasing food and agricultural items for humanitarian purposes.
The United States has consistently granted exemptions to Iraq to enable it to fulfill its immediate energy requirements without violating US sanctions.
Baghdad has been urged by Washington to lessen its reliance on Iranian energy and natural gas while stiff sanctions are still in place against Tehran.
The United States has placed sanctions on Iran due to Tehran’s nuclear program and backing for extremist groups.
Iraq is the first destination for Iranian exports, as the value of Iranian exports to Iraq between March 2022 and March 2023 reached $10.23 billion.
Gas imports from Iran are important for Iraq to generate electricity. However, US sanctions imposed on Iran make it difficult for Baghdad to pay for the Iranian gas.
The US sanctions imposed on Iran force Iraq to pay for Iranian electricity only through restricted bank accounts in Iraq, which Iran can use to purchase its humanitarian needs after obtaining permission from the United States.
Iraq heavily relies on gas imports from Iran but has recently invested in many projects to start taking advantage of flared gas and using renewable energy to generate electricity.
https://www.iraqinews.com/iraq/us-calls-on-iraq-to-stop-relying-on-iranian-energy-supplies/
TIDBIT FROM SANDY INGRAM, 10 MARCH
Sandy Ingram
This report is concerning for IQD investors holding IQD banknotes. We have no reason to believe our bank notes are in trouble...It appears many Iraqi people are holding on to their IQDs.
However speaking at a conference in Baghdad Ali Mosen Alaq, governor of the Central Bank of Iraq highlighted significant advancements in digital payments.
He pointed to a sharp rise in ATMs and e-wallet usage which...have propelled financial inclusion from 20% to 40% within just two years...He... predicted a gradual decline in cash transactions as central banks move toward digital payment solutions. In line with global trends, the CBI intends to develop its own digital currency.
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