Iraq Finalizes Steps for Landmark Gas Swap with Turkmenistan, Iran

The Iraqi Ministry of Electricity has announced that Iraq is advancing plans to implement a trilateral natural gas supply mechanism involving Turkmenistan and Iran, after finalizing key domestic administrative procedures.

The agreement is structured around a swap arrangement in which Turkmenistan will deliver natural gas to northern Iran, and Iran, in turn, will supply an equivalent amount to Iraq, The Caspian Post reports, citing local media.

The deal is designed to address Iraq’s persistent energy shortfalls, particularly during the high-demand summer season.

Ahmed Musa, spokesperson for the Ministry of Electricity, stated that the project was made possible through prior coordination between the relevant authorities in Iraq and Turkmenistan. He emphasized that the mechanism will play a critical role in stabilizing Iraq’s electricity generation, which has faced ongoing pressure due to reduced Iranian gas deliveries.

The gas swap is part of Iraq’s broader strategy to diversify its energy sources and reduce dependency on any single supplier, while ensuring greater resilience in its power grid.

While the administrative groundwork for the initiative has been completed, the finalization of a direct contract between Iraq and Turkmenistan remains pending. Concurrently, the Iraqi government is preparing the financial procedures necessary to carry out payments under the mutual settlement arrangement.