Iran, Turkmenistan, and Iraq sign strategic gas swap deal

A significant gas swap agreement was signed on July 3 between Iran and Turkmenistan to supply 10 billion cubic meters of Turkmen gas annually to Iraq through Iran. This strategic deal enhances Turkmenistan's export destinations, secures gas supply to northern Iran, and addresses Iraq's electricity shortages.

The agreement was formalized in a ceremony attended by Iran’s Ambassador to Turkmenistan, Ali Mojtaba Rozbahani, and Turkmengaz head Maksat Babayev, Caliber.Az reports, citing foreign media.

A joint statement highlighted the long-standing, mutually beneficial gas industry relations between Turkmenistan and Iran.

Iranian companies will construct a 125-kilometre pipeline to enhance Turkmenistan’s gas transmission capacity to Iran. Turkmenistan plans to boost its gas exports to Iran to 40 billion cubic meters annually, with ongoing talks to further cooperation.

The agreement underscores the importance of diversifying Turkmenistan's gas export routes and enhancing its global energy market position. For Iran, the pipeline mitigates northern region gas shortages and bolsters its role as a regional trade partner. The deal also alleviates Iraq’s power plant dependency on Iranian gas, providing a more reliable supply chain.

Two primary routes are central to this agreement: the Dauletabad–Sarakhs–Khangiran pipeline with a capacity of 12.5 billion cubic meters per year, and the Korpeje–Kordkuy pipeline with a capacity of 8 billion cubic meters per year. The Artiq-Lotfabad cross-border pipeline, launched in the 1990s, supports energy security in northern Iran’s border towns.

The agreement reflects Iran's strategy to establish a gas swap system with neighbours, improving energy security amidst harsh winters and remote gas fields. Iran’s existing swap deals with Turkmenistan and Azerbaijan demonstrate its commitment to regional energy cooperation. Potential future transit agreements with Turkey could further enhance regional energy routes and stability.

These infrastructure projects are vital for ensuring energy security and sustainable development in the region. By diversifying natural gas supplies and reducing reliance on traditional routes, these initiatives contribute to long-term regional stability and economic relations.

The collaborative efforts of Iran, Turkmenistan, and Iraq to optimize natural gas resources underscore their commitment to ensuring energy security and fostering regional development amidst geopolitical challenges.