BAGHDAD, Dec. 24 (Agencies) – Iraq announced Tuesday it has fully suspended natural gas imports from Iran, a move that immediately cut between 4,000 and 4,500 megawatts from the national power grid, according to the Ministry of Electricity.
While the decision appears dramatic, officials framed it as the culmination of a gradual shift away from imported fuels. Over the past year, Baghdad has halted shipments of gasoline, diesel, and kerosene, touting a broader narrative of energy self-sufficiency. Natural gas was the last—and most politically sensitive—piece of that puzzle.
Iranian supplies had historically covered 30 to 40 percent of Iraq’s power generation needs, but volumes had already been declining amid payment disputes, U.S. sanctions pressure, and shortages inside Iran. The “complete suspension” is less a sudden cutoff than the final step in a phased reduction of unreliable flows.
Washington has long pressed Iraq to reduce its dependence on Tehran, and Baghdad has sought to demonstrate compliance while avoiding a full-blown electricity crisis. The fallback plan—burning locally produced alternative fuels—keeps the lights on but at higher costs and with greater strain on infrastructure.
The announcement also signals a larger strategic shift. Western-backed energy projects are beginning to deliver results. BP’s $25 billion development in Kirkuk is now producing, with a focus on capturing associated gas that would otherwise be flared. TotalEnergies’ multi-billion-dollar integrated gas project in southern Iraq is designed to feed power plants directly, further sidelining Iranian imports.
Still, Iraq’s power sector remains under pressure. Summer demand continues to outpace installed capacity, and gas capture projects take time to scale. For now, Baghdad’s message is clear: Iranian gas is no longer a cornerstone of its energy system. Whether the grid can withstand that ambition will be the test in the months ahead.