Ashgabat, Tehran sign contract for 10 bcm of gas a year to be supplied to Iraq
ASHGABAT. July 3 (Interfax) - Turkmenistan and Iran have signed a contract for 10 billion cubic meters of natural gas a year, which Turkmenistan would supply to Iraq via Iranian territory based on swap terms, the Turkmen Foreign Ministry said on Wednesday.
Turkmenistan and Iran held negotiations in Ashgabat on July 1-3, 2024 to discuss a broad range of issues pertaining to continuing cooperation between the two countries in the gas sector, focusing on exploring new opportunities for productive interaction in this area, the ministry said.
The two countries are working together to implement agreements reached earlier at the top level on advancing gas cooperation, it said.
To expand gas transport infrastructure, Iranian companies are expected to build a 125-kilometer long gas pipeline and three gas compressor stations to ship extra amounts of gas to Iran.
In addition to the existing capacity, the parties plan to increase the volume of gas supplied to Iran via the Dauletabad-Sarakhs-Khangiran gas pipeline and through the Chal-Oyuk gas metering station to 40 billion cubic meters a year.
As reported, Turkmenistan currently supplies natural gas to Azerbaijan via Iran on swap terms under a gas swapping agreement concluded between Iran, Turkmenistan, and Azerbaijan in November 2021. The agreement envisions the delivery of 1.5 billion to 2 billion cubic meters of Turkmen gas by Iran to Azerbaijan in exchange for the delivery of an identical amount from Turkmenistan.
The Turkmen state gas company Turkmengaz and the Iraqi Electricity Ministry signed a memorandum of understanding on natural gas deliveries in October 2023. Iraq then displayed an interest in receiving around 10 billion cubic meters of gas from Turkmenistan on swap terms via Iran's territory.
Turkmengaz Deputy CEO Myrat Arcayew said at the Oil and Gas of Turkmenistan 2023 international conference in Ashgabat on October 25-27, last year that Turkmenistan intended to ship 9 billion cubic meters of gas a year to Iraq under a swap agreement involving Iran.