As part of its push to solve electricity shortages, Iraq strengthens its gas deal with Turkmenistan. The move aims to meet growing summer demand and reduce dependence on limited fuel sources.
On Tuesday, Iraq’s cabinet approved steps to finalize gas imports from Turkmenistan. Under the agreement, Iraq plans to import 14 to 15 million cubic meters of gas per day. This supply could power plants and generate up to 2,000 megawatts of electricity.
In 2023, Iraq signed a memorandum of understanding with Turkmenistan. The goal was to secure gas needed to run power stations. Now, the deal enters a new phase with clear support from the government. However, important details remain under discussion—especially how the gas will reach Iraq.
Gas from Turkmenistan must travel through Iran before arriving in Iraq. This transport route depends on existing pipeline networks that link all three countries. Yet, the plan faces obstacles. Iraq still relies on gas from Iran for nearly one-third of its power production. But those supplies have dropped, pushing Iraq to find new sources.
To fill the gap, Iraq aims to import an average of 20 million cubic meters per day from Turkmenistan. This amount would cover shortages and stabilize power production during peak seasons. However, one challenge remains: payment.
Due to US sanctions on Iran, Iraq’s Trade Bank (TBI) cannot issue the required letters of credit. This problem affects the financial process needed to complete the deal. Without a payment channel, the flow of gas cannot begin, despite agreements on volume and delivery.
In May, Iraq’s Electricity Minister, Ziyad Ali Fadel, visited Turkmenistan to speed up the gas deal. He confirmed that the gas will pass through Iran’s pipeline network, which already connects to Iraq. Over the next five years, this route will carry Turkmen gas to Iraqi power plants.
The strategy reflects Iraq’s efforts to create energy stability by diversifying its gas sources. With demand rising during summer, every extra cubic meter helps reduce blackouts.
The project also highlights regional cooperation. Turkmenistan, Iran, and Iraq all benefit from stronger trade links. If the transport and payment hurdles are cleared, the agreement will boost Iraq’s energy security and reduce pressure on its power grid.
By supporting this deal, Iraq strengthens its gas deal with Turkmenistan and takes another step toward reliable energy.