On October 19, representatives from Turkmenistan and Iraq signed a significant gas agreement in Baghdad. Under the deal, Iraq will import up to 20 million cubic meters of gas daily, with deliveries routed through Iran via a swap arrangement. The Iraqi government has expressed its intention to begin implementing the contract soon.
The contract shows that Turkmenistan delivers 10 million cubic meters of fuel to Iraq in winter and 20 million cubic meters in summer. Iraqi Electricity Minister Ali Fadel noted that the contract compensates for the same amount of gas in the event of supply problems. Iraq faces severe energy shortages and unstable supplies from Iran. Problems include its debt and difficulties making payments to Iran, which is under US sanctions. Supply from Turkmenistan is expected to moderate this dynamic. In parallel, Iraq plans to sign contracts with other suppliers and invest in its gas projects.
Turkmenistan is also China’s gas supplier and was the largest supplier to China in the first half of 2024, exporting gas worth $5.67 billion. During a recent visit to Iran, Gurbanguly Berdimuhamedov, the former president of Turkmenistan and current chairman of the People’s Council (Halk Maslahaty), announced plans to increase gas supplies to Iran to 40 billion cubic meters annually, further solidifying Turkmenistan’s role as a major energy provider in the region.
