(MENAFN- Trend News Agency) ASHGABAT, Turkmenistan, July 11. Iraq is preparing to launch a natural gas supply scheme involving Turkmenistan and Iran, as the Ministry of Electricity announced the completion of domestic administrative steps needed for implementation, Trend reports, citing the Iraqi Ministry of Electricity.

The agreement, based on a trilateral offsetting mechanism, foresees Turkmen gas deliveries to northern Iran, which will in turn supply equivalent volumes of gas to Iraq. According to Ministry of Electricity spokesperson Ahmed Musa, the initiative was enabled by prior coordination between the competent authorities of Turkmenistan and Iraq.

The mechanism is crafted to tackle the pressing gaps in Iraq's energy system. Officials in Baghdad expect that Turkmen gas will help compensate for ongoing reductions in Iranian gas supplies, which have been straining Iraq's electricity generation, especially during the peak summer demand season.

To proceed with the scheme, a direct contract between Turkmenistan and Iraq still needs to be finalized. In parallel, Baghdad is preparing the required financial procedures to carry out payments under the mutual settlement structure.

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