Iraq signed a memorandum of understanding with Turkmenistan to buy up to 10 billion cubic meters of natural gas annually, according to Turkmenistan's state news agency on Monday.
The agreement was reached following a meeting in Baghdad between a delegation led by the CEO of Turkmengas, Maksat Babayevand, and Iraqi Electricity Minister Ziyad Ali Fadel.
Following discussions on bilateral energy cooperation, the delegates signed a swap gas agreement for 10 billion cubic meters of Turkmen natural gas to be transferred through neighboring Iran to Iraq.
Negotiations with Iran for the gas transfer through its territory are underway with the National Iranian Gas Company (NIGC).
If successful, the deal will provide Iraq with a long-term solution to its energy shortages.
As part of efforts to diversify its much-needed energy sources, Iraq also struck an oil-for-gas deal with Tehran earlier in July to meet its surging summertime demand for electricity, but as the country's economy has been paralyzed by years of unrest, the government is actively seeking out alternate energy sources and collaborations to resurrect its ailing energy infrastructure.
Iraq currently produces 20,800 megawatts of electricity but needs around 35,000 megawatts to meet increased demand during the summer, when temperatures frequently exceed 50 degrees Celsius.
Iraq produces 14,000 megawatts of power using natural gas imported from Iran, corresponding to about 40% of its electricity needs. The country also imports nearly 1,000 megawatts of electricity daily directly from Iran.
Iran, meanwhile, has occasionally used the problem as a political tool, restricting or shutting off its gas supplies to Iraq under the pretext of technical failures or rising domestic demand.
Turkmenistan, with its extensive natural gas reserves, plays a crucial role for both regional and global energy needs.
Turkmenistan ranks fourth in the world in terms of natural gas reserves, after Russia, Iran, and Qatar, and has been striving to increase its market share. Natural gas output in the country peaked in 2021 at roughly 83 billion cubic meters.
By Basak Erkalan and Sibel Morrow
Anadolu Agency
energy@aa.com.tr