Turkmenistan prepared to supply 9 bcm of gas/year to Iraq in swap with Iran - Turkmengaz

ASHGABAT. Oct 26 (Interfax) - Turkmenistan plans to supply 9 billion cubic meters of natural gas per year to Iraq under a swap agreement with Iran, Turkmengaz deputy CEO Myrat Archayev was reported as saying by Turkmen news agency Orient at the Turkmenistan Oil and Gas international conference in Ashgabat on Wednesday.

Archayev also said a "breakthrough" is expected in 2024 in negotiations with international investors on the second and third phases of the development of the Galkynysh gas field.

"The development of export markets is necessary for the development of gas production led by the Galkynysh field, and our main markets right now are China and Russia," Deputy Prime Minister Batyr Amanov, who oversees Turkmenistan's fuel and energy sector, said at the conference.

Purchases of Turkmen gas for Iraq through a swap deal with Iran were discussed on August 24 at negotiations between Turkmengaz management and an Iraqi delegation. Iraq's representatives said at the time that the country's demand for Turkmen gas is growing due to rapid development of infrastructure. Iraq was therefore interested in signing a contract to buy natural gas for at least five years.

Turkmengaz and Iraq's Electricity Ministry signed a memorandum on cooperation on gas supplies on October 9. Baghdad said at the time that it was prepared to buy about 10 bcm of Turkmen gas per year.

Turkmenistan currently makes swap deliveries of gas to Azerbaijan through Iran. National Iranian Gas Company CEO Majid Chegeni, speaking about the gas swap agreement with Turkmenistan in August 2023, said the amount of gas Iran receives from the country had grown to 8 mcm per day from 4.5 mcm.

He also said at the time that a trial delivery of 10 mcm of Turkmen gas per day was successfully made in August. Iran's ambassador to Turkmenistan, Gholam Abbas Khales said in August that there is potential to increase swap deliveries from Turkmenistan to 20 mcm per day.