Iraq secures Turkmen gas via Iran swap deal

Iran and Turkmenistan have signed a gas swap deal enabling Ashgabat to sell up to 10 billion cubic meters (bcm) of natural gas to Iraq annually.

The agreement was signed on Wednesday in Turkmenistan after extensive negotiations between Tehran and Ashgabat, Caliber.Az reports per foreign media sources.

Iran's Ambassador to Turkmenistan, Ali Mojtaba Roozbahani, and Maksat Babayev, chairman of the State Concern Turkmengas, signed the contract. The swap mechanism involves Iran supplying up to 10 bcm of natural gas to Baghdad in exchange for receiving the same volumes from Turkmenistan.

Iranian companies will also construct a new 125-kilometer gas pipeline and three gas pressure booster stations in Turkmenistan to increase annual gas shipments to Iran to 40 bcm.

Ambassador Roozbahani highlighted the efforts of late President Ebrahim Raisi and Foreign Minister Hossein Amir-Abdollahian in finalizing the deal, emphasizing it as a significant step towards enhancing cooperation between Iran and Turkmenistan in the gas sector.

Iraq is purchasing Turkmen gas through this swap deal due to its strategic location, which allows Iran to act as a conduit for the gas supply. This arrangement helps Iraq diversify its energy sources and secure a stable gas supply to meet its domestic needs.