The US State Department granted Iraq a 120-day sanctions waiver allowing it to keep importing Iranian electricity and natural gas to ease power shortages, a spokesman said Sunday.
The exemptions have gotten progressively longer, from a 45-day waiver granted when US sanctions on Iran's energy customers snapped back in November. Iraq then secured two-in-a-row 90-day waivers, the latest of which was set to expire this week.
The State Department said it expects Iraq to continue working to end its dependence on Iranian power supplies.
"While this waiver is intended to help Iraq mitigate energy shortages, we continue to discuss our Iran-related sanctions with our partners in Iraq," said the spokesman.
Iraq is heavily reliant on Iran to maintain its power supply, and even then it has significant blackouts that are exacerbated by the summer heat. Power disruptions can trigger protests that have unseated multiple electricity ministers over the past decade.
Gas and power imports account for a third of the country's 14,000 MW of electricity demand. Cross-border transmission lines import about 1,000 MW. About 1.25 Bcf/d of gas flows by pipeline into Diyala and Baghdad provinces. Another 350 Mcf/d is sent by pipeline into southern Basra province.
Each time another waiver deadline approaches, Washington has demanded that Baghdad show signs of weaning itself off Iranian energy supplies, including by developing its own gas and power sector. Washington is also urging, but not requiring, Iraq to do so with contracts with American companies.
