From 1-3 July, Turkmenistan and Iran engaged in negotiations on the supply of natural gas. Reporting on the meeting in Ashgabat, Turkmenistan’s Foreign Ministry announced that a contract had been signed for the purchase and sale of natural gas of up to 10 billion cubic meters per year, to be supplied by Turkmenistan to Iraq through the territory of Iran under a swap scheme.
According to the ministry’s statement, to accommodate increased supplies of gas, Iranian companies will also build a new 125-kilometer pipeline and three gas compressor stations in Turkmenistan.
Under the new contract, the volume of Turkmen gas supplied to Iran along the Dovletabad – Sarahs – Hangeran route and through the Chaloyuk gas measuring station, will rise to 40 billion cubic meters per year.
Despite being home to the world’s second-largest natural gas reserves, Iran has experienced chronic natural gas shortages during the winter months, and rising domestic demand has limited the country’s ability to export gas.
As a result of the gas swap with Turkmenistan, Iran will be able to meet its gas export commitments.
Turkmenistan has the world’s fourth-largest proven natural gas reserves, but due to its geographical location and geopolitical environment, has faced difficulties in finding export markets for its gas.
Today, China is the main buyer of Turkmen natural gas.
