Shafaq News/ Official Iranian media reported, on Thursday, that Iran and Turkmenistan have signed a gas exchange agreement following extensive negotiations.
The deal, signed on Wednesday, facilitates the exchange of gas between the two countries and its subsequent supply to Iraq.
The signing ceremony was attended by Ali Mojtaba Rouzbahani, Iran's ambassador to Turkmenistan, and Maksat Babayev, head of the Turkmen gas company.
A joint statement from both sides emphasized that Turkmenistan and the Islamic Republic of Iran have been fostering cooperation based on friendship, good neighborliness, mutual respect, and equal partnership for years. This collaboration in the gas sector is founded on mutual interests.
The statement highlighted the positive experiences from joint activities in exporting gas from Turkmenistan to Iran and then to third countries, which have laid a solid foundation for expanding bilateral cooperation in this field.
Under the new agreement, Turkmenistan will supply up to 10 billion cubic meters of gas annually to Iraq via Iranian territory, based on a swap mechanism.
On October 6, 2023, Iraqi Electricity Minister Ziyad Ali Fadhil signed a memorandum of understanding with Turkmenistan's Minister of State for Gas Affairs to import Turkmen gas into Iraq.
Iraq currently imports between one-third and 40% of its electricity and gas needs from Iran, a critical supply, especially during the summer months when temperatures skyrocket and energy consumption peaks.
However, Iraq faces challenges in paying for these imports due to US sanctions, which restrict Iran's access to funds except for purchasing non-sanctioned goods such as food and medicine.