Iraq has inked a gas supply agreement with Turkmenistan, securing 20 million cubic metres (mcm/d) per day of gas to enhance its electricity facilities.
The agreement was finalised in Baghdad, with Iraq’s Electricity Minister Ziad Fadil and Turkmenistan’s State Minister and chairman of Turkmengas, Maksat Babayev, signing the deal.
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The new gas supply arrangement is particularly significant for Iraq, an oil-rich nation that has faced intermittent gas supply disruptions from Iran due to outstanding debts and US sanctions complicating payment processes.
Iraq’s Electricity Minister, Ziad Fadil, said: “The gas to be imported from Turkmenistan will be used to operate our power stations and consolidate the national electricity network.”
The agreement was finalised after detailed negotiations related to the tariff price, gas volumes, supply methods and contract duration.
Fadil stated that the gas will be transported through Iran’s pipeline system under a “swap” transaction arrangement facilitated by the Dubai-based Loxstone Energy Company.
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By GlobalDataHe also noted that the agreement will be regulated under Swiss law.
Turkmenistan’s gas supply to Iraq would vary seasonally, with 20mcm/d provided during the summer months and 10mcm/d in winter.
This deal is part of Iraq’s ongoing efforts to stabilise its energy supply amid regional challenges.
In September this year, the Association of the Petroleum Industry of Kurdistan (APIKUR) called for the swift resumption of oil exports through the Iraq-Türkiye pipeline.
The 600-mile pipeline plays a vital role in transporting oil from the Kurdistan region.
APIKUR called on the Iraqi Government to initiate urgent discussions with the Kurdistan Regional Government and international oil companies to resolve disputes and reopen the pipeline.
