Reuters reported in September 2025 that Iraq’s proposed import of Turkmen gas through Iran had not secured US approval and that the contract was then suspended. The arrangement would have involved a gas swap through Iran rather than a direct Turkmen–Iraqi pipeline. Reuters cited Iraqi officials and documents, as well as a US source; the US Treasury declined comment.
The episode illustrates a fuel-supply constraint on electricity generation. It also shows why a nominal gas supply agreement cannot be counted as available fuel until its legal, transport and commercial conditions are resolved.
This briefing describes the position Reuters reported in 2025. It makes no claim about the arrangement’s current status or the present sanctions position, both of which require a fresh check before a 2026 procurement or operating decision.