Iraq finalizes deal to import natural gas from Turkmenistan
Date
10/24/2024 5:07:11 AM
(MENAFN) Amid escalating tensions in the Middle East, Iraq has finalized a deal to import natural gas from Turkmenistan, aiming to reduce its reliance on gas imports from Iran, which is currently entangled in regional conflicts. For years, Iraq has faced numerous challenges with its gas imports from Iran, including international sanctions that have made it difficult to make payments in dollars. Additionally, technical issues with pipelines and a lack of regular maintenance have further complicated matters, as Iraq relies on 50 million cubic meters of gas daily to power its electricity plants.
In its search for alternatives to Iranian gas, Baghdad has long been exploring other options, but recent regional developments have hastened the process of securing a deal with Turkmenistan. The move comes in anticipation of any potential disruptions, particularly since Iran is heavily involved in conflicts across the region. According to a source in Iraq’s Ministry of Electricity, the urgency to finalize the deal was driven by the ongoing wars, despite reservations from political forces allied with Iran. However, the Prime Minister's Office pushed forward with the agreement, which was made in coordination with the Iranians.
The source also noted that while Iran had previously opposed this project in recent years, it eventually conceded under pressure from the Iraqi government. Iran recognized the importance of allowing the deal to proceed, especially since it would still benefit economically by using its pipelines to help transport the gas to Iraq. Though Iran is not immediately impacted by the agreement, experts predict that Tehran could face significant long-term challenges as Baghdad moves toward reducing its dependence on Iranian gas.
Economic expert Sarmed Al-Shammari commented that Baghdad's deal with Turkmenistan represents a significant step forward in diversifying its energy sources, marking the first time Iraq has imported non-Iranian gas. He highlighted that Iran, through its regional allies, had long resisted such efforts, but this new agreement signals a breakthrough. Turkmenistan’s gas could become a viable alternative to Iranian gas, especially if any future crises arise in the region.
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