Turkmenistan and Iran Forge Major Gas Swap Deal to Supply Iraq

Turkmenistan has signed a swap deal with Iran to supply 10 billion cubic metres of natural gas annually to Iraq. In exchange, Iran will provide the same volume of gas to Baghdad. The deal is part of Turkmenistan's efforts to diversify energy exports beyond China, with plans to boost shipments to Iran.

Turkmenistan has signed a swap deal with Iran under which Ashgabat will sell 10 billion cubic metres (bcm) of natural gas a year to Iraq, the Turkmen government said on Wednesday. Iran, which lies between Turkmenistan and Iraq, has its own substantial gas reserves, and under the swap deal Tehran will supply gas to Baghdad in exchange for receiving the same volumes from Ashgabat.

The Turkmen government provided no detail on pricing, timing or logistics, but said it planned to build a new gas pipeline to Iran and is working to boost annual shipments in that direction to 40 bcm. Gas-rich Turkmenistan mostly exports energy to China, but is trying to diversify exports by adding sales to Europe, Pakistan and India.