Iraq LNG Import Plans Paused As Gas Shortage Looms

30 May 2025 Issue: 68 / 22 By: Yesar Al-Maleki

Iraq’s plans to import LNG this summer are stalling, as efforts to secure a Floating Storage and Regasification Unit (FSRU) have been put on hold due to concerns over price. With the window for summer deliveries narrowing, the prospect for LNG imports this summer is slim. Compounding Iraq’s gas deficit, Iran has once again cut gas flows needed for power generation.

LNG import plans are rapidly losing momentum due to Iraq’s failure to secure a Floating Storage and Regasification Unit (FSRU). The ministerial energy council had been reviewing only one proposal from Breeze Investment, a little-known UAE-based company, despite receiving at least one offer from a more established firm. Concerns over pricing have stalled progress, delaying a final recommendation to the cabinet.

Resorting to LNG imports just ahead of the high-demand summer season was always a long-shot, and failure to secure volumes is certain to result in widespread electricity blackouts in the coming months. Iraq’s electricity struggles have been compounded by the US ban on payments for Iranian electricity imports (MEES, 14 March). All four lines feeding up to 1.2GW of electricity are now offline, ministry spokesperson Ahmed Musa said on 26 May. (CONTINUED - 1010 WORDS)