A report from a Washington-based energy platform revealed a significant decline in Iranian gas supplies to Iraq, dropping to 10.5 million cubic meters per day, with supplies to southern regions halted and currently limited to central areas. This development signals
increasing pressure on the country's electricity system. According to an informed Iraqi source, imported gas quantities from Iran decreased from levels ranging between 15 and 20 million cubic meters per day about a month ago, stabilizing now at approximately 371
million standard cubic feet per day. The source explained that gas flow to the central region is 10.5 million cubic meters daily, while supplies to the southern region have stopped due to rising domestic Iranian demand amid falling temperatures and
supply shortages in Iran, prompting reductions in exported volumes, especially during cold spells. Iraq's electricity sector heavily relies on Iranian gas to operate several power plants, with Iranian supplies covering between 30 and 40 percent of the plants' needs, making
any reduction in imports an additional factor complicating energy provision, particularly in central and southern areas. Iranian gas supplies have experienced frequent interruptions this year, prompting the Ministry of Electricity to take emergency measures, including using domestic gas and coordinating
with the Ministry of Oil to provide alternative fuels such as red diesel. In March 2026, the halt in Iranian gas flow led to approximately 3,100 megawatts going offline. Agreements between Iraq and Iran include supply volumes ranging from 25
to 35 million cubic meters daily during winter, increasing to about 55 million cubic meters daily in summer. The supply decline occurs amid growing U.S. pressure on Iraq to cease importing Iranian gas, while the government seeks to convince Washington
that these supplies are essential for power plants and cannot be abruptly discontinued. U.S. officials noted that Iranian supplies have been irregular over past years and have been cut off several times without causing a collapse of the electricity system,
whereas Iraq warned that a halt could result in losing about 8,000 megawatts of generation capacity, highlighting differing assessments between the two sides. Simultaneously, responsible sources indicate that Iraq owes Iran around 3 billion dollars, with payment complications due to
U.S. sanctions and pressures. Challenges persist in Iraq's electricity sector due to the gap between production and demand, along with transmission and distribution network issues limiting the system's ability to compensate for imported fuel shortages. Electricity production in Iraq during
peak times ranges between 16,000 and 17,000 megawatts, against actual needs exceeding 55,000 megawatts, underscoring the importance of imported supplies to meet demand, especially in summer.
