Iraq completed all administrative steps to finalize its gas compensatory agreement with Turkmenistan. This agreement forms a vital part of the government’s broader strategy to strengthen energy security through alternative sources.
Additionally, the Ministry of Electricity confirmed the conclusion of these procedures. Officials emphasized that Iraq completed all preparations to begin importing Turkmen gas. The key phrase gas compensatory agreement appeared throughout discussions as central to this energy solution.
Therefore, under the terms of the gas compensatory agreement, Iraq will receive Turkmen gas supplies via a swap mechanism with Iran. Turkmen gas will flow into northern regions of Iran. In return, Iran will provide equivalent amounts of natural gas to Iraq. This arrangement offers a solution to longstanding payment and sanctions challenges between Baghdad and Tehran.
Moreover, electricity Ministry spokesperson Ahmed Mousa announced that the deal followed high-level talks. The Minister of Electricity, Ziyad Ali Fadhil, reached an understanding with Turkmenistan’s Minister of Gas. They both agreed to restrict the contract to only Iraq and Turkmenistan. According to Mousa, Iraq will pay Turkmenistan directly, bypassing Iran and relying fully on the compensatory framework.
Additionally, officials confirmed that the Ministry of Electricity completed all internal approvals. The Prime Minister’s Office continues to follow up on final administrative and financial procedures. These include credit allocations and fund transfers to Turkmenistan.
Mousa reiterated that Iraq urgently needs natural gas. Severe shortages of Iranian gas disrupted power generation, leading to energy rationing and pressure on the national grid. Through this new gas compensatory agreement, Iraq hopes to recover stable supply levels during peak consumption months.
The deal signals a shift in Iraq’s regional energy partnerships. Iraqi leaders aim to reduce dependence on single-source gas imports. By securing this Turkmen deal, Iraq diversifies its energy imports while staying aligned with international trade frameworks.
Officials expressed hope that financial approvals will come quickly. Once Iraq transfers payments to Ashgabat, the gas compensatory agreement will take effect immediately. Energy experts believe this deal will improve generation capacity across Iraq’s main power stations.
With summer demand increasing sharply, the Ministry views this agreement as essential. More importantly, it shows Iraq’s readiness to build new energy bridges within the region, while ensuring consistent electricity access for citizens.