Iraqi cabinet approves gas deal with Turkmenistan
The Iraqi cabinet made several decisions on Tuesday aimed at resolving one of the country's most serious challenges.
The Iraqi cabinet decided to move forward with a deal to import gas from Turkmenistan in quantities ranging from 14 to 15 million cubic meters per day, potentially providing an additional 2,000 megawatts of electricity.
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.
The gas supply agreement with Turkmenistan aims to provide Iraq with an average of 20 million cubic meters per day.
This gas will be transported to Iraq via pipelines that connect Turkmenistan and Iran to compensate for the decreasing gas supplies from Tehran.
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.
In May, the Iraqi Minister of Electricity, Ziyad Ali Fadel, visited Turkmenistan to accelerate the fulfillment of a gas supply contract with Iraq.
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.
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