Turkmenistan has been offered an alternative scheme for exporting natural gas to Iraq. The new proposal was put forward by Iraq’s Ministry of Energy, reports Nova.news.
According to ministry spokesperson Ahmed Mousa, Iraq had previously signed an agreement with Turkmenistan to import 20 million cubic meters of gas per day. The fuel is expected to be transported through pipelines linking Turkmenistan and Iran to compensate for reduced gas supplies from Tehran.
However, the implementation of this scheme has faced challenges: the Trade Bank of Iraq (TBI) was unable to issue a letter of credit to pay for gas imports due to U.S. sanctions on Iran.
On May 25, Iraq’s Minister of Energy Ziyad Ali Fadel visited Turkmenistan to expedite the execution of the gas contract. According to the ministry, a memorandum of understanding for gas imports from Turkmenistan for Iraq’s power plants was signed back in 2023. However, its implementation requires further negotiations on the mechanism for transporting gas through Iran.
Iraq’s power plants rely on gas imports from Iran for about one-third of the country’s energy needs. Fadel previously stated that under the agreement, Iraq plans to receive gas from Turkmenistan via Iran’s gas pipeline network, which is connected to Iraq. According to the deal, gas deliveries will be carried out over a five-year period.
In March 2024, President of Turkmenistan Serdar Berdimuhamedov and Iraqi Prime Minister Mohammed Shia' Al-Sudani discussed gas supplies and the opening of Turkmenistan’s embassy in Iraq.
The protocol outlining the key commercial terms of the gas supply agreement was signed by the two parties in November 2023. It stipulates annual deliveries of 9 billion cubic meters of Turkmen gas to Iraq via Iran under a swap scheme for five years.
CentralasianLIGHT.org
May 29, 2025