Iraq Moves to Pull Plug on Its Iran Power Cord

August 27, 2019

Author: 

Isabel Coles and Ghassan Adnan

Publication: 

The Wall Street Journal

Related Country: 

  • Iraq

Under pressure from the United States, Iraq is taking steps to reduce its reliance on Iranian energy imports. 30 to 40 percent of Iraq’s power is currently derived from Iranian electricity and natural gas, and gas imports account for approximately 75 percent of that number. The United States has been critical of Iraq for its dependence on Iran, but has given it a series of sanctions waivers to continue buying Iranian energy, the latest of which are up for renewal in October. They are conditioned on Iraq taking steps to reduce its dependence on Iranian energy. In July, Iraq awarded a contract to the U.S. firm Honeywell to increase gas production at the Basra oil fields to 600 million cubic feet. In April, it gave German-based Siemens three contracts totaling $700 million to add power capacity and update existing facilities and distribution networks. Iran agreed to a new electricity deal earlier this year and proposed building an additional power plant in Iraq.