Iraq signs agreement with Turkmenistan to supply 20 million cubic meters of gas per day

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[size=52]Iraq signs agreement with Turkmenistan to supply 20 million cubic meters of gas per day[/size]

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10/19/2024
The signing ceremony of the agreement and contract for the supply of Turkmen gas to Iraq took place in the capital, Baghdad, today, Saturday.[/size]
[size=45]On the Iraqi side, it was signed by Ziad Ali Fadhil, Minister of Electricity, and on the Turkmen side, it was signed by Maksid Babayev, Minister of State and Chairman of the Gas Company in his country.[/size]
[size=45]The signing of the agreement was the culmination of intensive technical efforts that extended for more than a year, including multiple meetings, mutual visits, and the signing of a memorandum of understanding last year.[/size]
[size=45]The terms of the agreement stipulate that Iraq will be supplied with 20 million cubic meters of Turkmen gas per day, which will constitute a qualitative addition to the country’s energy sources.[/size]
[size=45]The Swiss company (Loxstone Energy), which was contracted under the decisions of the Council of Ministers, is responsible for delivering Turkmen gas to Iraq, using the Iranian pipeline network, relying on the swap mechanism, which ensures the smoothness and efficiency of the transportation process, according to a statement issued by the Iraqi Ministry of Electricity.[/size]
[size=45]Following the conclusion of the agreement, the Minister of Electricity confirmed in a joint press statement with the Turkmen Minister of State that the agreement is part of the government’s program to diversify energy sources and enhance supplies, and the Iranian side’s approval was obtained.[/size]
[size=45]He explained that "this step will contribute significantly to ensuring that gas stations are supplied with the necessary fuel," indicating that "gas stations currently contribute about 60% of the total electricity production in Iraq."[/size]
[size=45]He continued, “We work in the Ministry of Electricity according to a comprehensive vision that combines immediate solutions and long-term strategy,” noting that “importing gas represents a temporary measure until our national gas production projects are completed, self-sufficiency is achieved, and full reliance on our local resources is achieved within the next few years.”[/size]
[size=45]For his part, the Turkmen minister expressed his pride in this strategic partnership, stressing his country's commitment to supporting Iraq's efforts to develop the energy sector.[/size]
[size=45]“We are proud to be a reliable partner of Iraq in the energy sector, and we look forward to strengthening economic cooperation between our two countries,” Maksad Babayev said in the joint statement.[/size]
[size=45]In early July, Iran signed an agreement stipulating the exchange of gas between it and Turkmenistan, after intensive negotiations.[/size]
[size=45]Iranian media reported at the time that a contract had been signed to exchange gas between Iran and Turkmenistan, and then supply it to Iraq.[/size]
[size=45]On October 6, 2023, the Iraqi Minister of Electricity, Ziyad Ali Fadhil, signed a memorandum of understanding with the Turkmen Minister of State for Gas Affairs, to supply Turkmen gas to Iraq.[/size]
[size=45]Iraq imports electricity and gas from Iran for between a third and 40 percent of its energy needs, which is critical, especially in the summer months when temperatures reach 50 degrees Celsius and energy consumption peaks.[/size]
[size=45]Iraq is facing difficulty in paying for these imports due to US sanctions that only allow Iran to obtain funds to purchase non-sanctioned goods, such as food and medicine.[/size]
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