Iraq Explores New Methods to Import Gas from Turkmenistan

The Iraqi Ministry of Electricity has proposed an alternative approach for importing natural gas from Turkmenistan, aiming to resolve the ongoing issues that have prevented gas imports despite a formal agreement between the two nations.

The spokesperson for the Iraqi Ministry of Electricity, Ahmed Musa, told the Iraqi News Agency (INA) that Iraq had previously signed a gas supply agreement with Turkmenistan for an average of 20 million cubic meters per day, The Caspian Post reports citing foreign media.

This gas will be transported to Iraq via pipelines that connect Turkmenistan and Iran to compensate for the decreasing gas supplies from Tehran.

Musa clarified that this approach has been hindered by the Trade Bank of Iraq’s (TBI) inability to issue a letter of credit to allow Iraq to pay for gas imports due to US sanctions on Iran.

The Iraqi Minister of Electricity, Ziyad Ali Fadel, arrived in Turkmenistan on Sunday to accelerate the fulfillment of a gas supply contract with Iraq.

Iraq signed a memorandum of understanding in 2023 with Turkmenistan to import the gas it needs to operate its power plants, according to the Ministry of Electricity, which indicated that the step requires additional negotiations related to the mechanism of transporting gas through Iran.

Power plants in Iraq depend on gas imports from Iran, which cover one-third of the country’s energy needs.

Fadel indicated earlier that Iraq will get gas from Turkmenistan through Iran’s pipeline network, which is connected to Iraq and will eventually serve the country’s power plants.

Over the next five years, the arrangement will allow Turkmen gas to be transported to Iraq across Iran.

Iraq has apparently completed all of the required steps to begin importing gas from Turkmenistan in January 2024. The key reason for the delay is the need to execute a detailed agreement with Iran, the country of transit.