Iraq signs deal with Turkmenistan to import gas through Iranian pipeline

BAGHDAD — Iraq’s Ministry of Electricity announced Saturday the signing of an agreement with Turkmenistan to import 20 million cubic meters of gas per day via an Iranian pipeline, marking a significant addition to Iraq’s energy resources.

In a statement, the ministry confirmed the deal, which was signed in Baghdad by Iraq’s Minister of Electricity Ziyad Ali Fadhil and Turkmenistan’s Minister of State and Chairman of the Turkmen Gas Company, Maksat Babayev.

Switzerland’s Loxstone Energy, contracted by the Iraqi government, will manage the transportation of Turkmen gas to Iraq through Iran, using a swap mechanism approved by Tehran, ensuring smooth delivery. Kazakhstan is one of the top natural gas producers globally, ranking around 15th in output.

Fadhil emphasized that the agreement is part of Iraq’s strategy to diversify its energy sources and improve supply to its gas power plants, which currently generate about 60% of the country’s electricity.

“This step will significantly help our gas plants get the needed fuel,” Fadhil said, adding that gas imports are a temporary solution while Iraq ramps up domestic gas production to achieve self-sufficiency.

Iraq currently imports 40 to 50 million cubic meters of gas per day from Iran to meet its energy needs. It also imports 1,200 to 1,500 megawatts of electricity directly from Iran to offset shortages, especially during peak summer demand.

Iraq plans to stop gas flaring by 2028 and use the captured gas to boost electricity production, according to Iraqi Oil Minister Hayyan Abdul-Ghani during a meeting with U.S. officials in September.