BAKU, Azerbaijan, July 23. Iraq’s longstanding struggle to balance gas supply and demand may be easing, but challenges remain, the International Energy Agency (IEA) said in its latest outlook, Trend reports.
Since 2017, Iraq’s growing fleet of gas-fired power plants has driven rapid demand growth, while domestic production has lagged behind due to security issues and underinvestment in infrastructure. As a result, the country has leaned heavily on Iranian gas and electricity imports to fill the gap.
Iran supplied about 9 billion cubic meters (bcm) of piped gas to Iraq in 2023, and the two sides agreed in April 2024 to raise daily flows to 50 million cubic meters. However, actual deliveries were likely lower amid Iran’s own supply constraints and reported disruptions in late 2024.
These imports also hinge on U.S. sanction waivers. While Washington has allowed Iraq to buy Iranian gas since 2018, it revoked the waiver for electricity imports in March 2025, adding pressure on Baghdad to diversify its energy sources.
Iraq aims to end piped gas imports from Iran by 2028 and reach gas self-sufficiency by 2030. That effort includes capturing flared gas - around 18 bcm in 2023 - and ramping up domestic production from newly awarded and existing concessions. The country is also exploring LNG imports through a floating terminal, though significant progress in domestic output remains key to meeting its goals.
