Iraq expects to sign a gas contract with Turkmenistan by the end of the year, Iraqi Deputy Minister of Oil for Gas Affairs, Azat Saber said following talks in Turkmenistan.
"A memorandum of understanding is presently in its drafting phase...slated to be completed by the end of the year, the memorandum will decide the volumes and the modus operandi to be espoused between the two countries."
Saber said Turkmenistan is one of the leading gas producers in the region.
Last year, Iraq imported more 9bn cubic meters of natural gas from its neighboring country, Iran. Shafaq News Agency notes that Baghdad is under increasing pressure from the US to wean itself off electricity and gas imports from Iran, which has been subject to US sanctions since 2018.
"The US has issued Iraq a series of sanctions waivers to continue importing Iranian energy but has warned the waivers could end if Baghdad does not make serious progress toward finding other fuel and power sources."
In early July, Iraq faced disruptions in the supply of Iranian gas (which accounts for about 40% of imports) and the government decided to find alternatives, including Turkmenistan.
Experts told Daryo that Turkmen gas could flow to Iraq via Iran, which announces its willingness to re-export it to new markets - on a reimbursable basis, up to 15bn cubic metres of gas annualy.
Credits: Eziz Boyarov
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