Iran to Build Pipeline for Gas Delivery to Iraq in Collaboration with Turkmenistan

In a significant development, Turkmenistan and Iran have officially signed a contract for the delivery of 10 billion cubic meters of Turkmen gas annually, with Iran set to further transport this gas to Iraq. The contract, announced by Turkmenistan's foreign ministry, did not disclose the financial value but highlighted that Iranian companies will be responsible for constructing a new 125-kilometer pipeline to enhance Turkmenistan's delivery capabilities. Additionally, Turkmenistan aims to boost its gas supplies to Iran to 40 billion cubic meters per year. This agreement comes as Iraq experienced disruptions in Iranian gas supply last year, which constituted around 40% of its imports. Turkmenistan heavily relies on the revenue generated from the sale of its abundant gas reserves, prompting the government to explore alternative options to ensure the smooth operation of power plants in the central and southern regions of the country. Being a former Soviet republic, Turkmenistan's economy is significantly dependent on exporting its vast natural gas resources. Notably, China stands as the primary customer for Turkmen gas, while efforts are underway to establish a pipeline for supplying gas to Afghanistan, Pakistan, and India. The newly signed contract between Turkmenistan and Iran marks a strategic move in the energy sector, with implications for regional gas trade dynamics. By expanding gas delivery capacities and strengthening ties with Iran, Turkmenistan aims to secure its position as a key player in the global energy market. The agreement underscores the importance of gas exports for Turkmenistan's economic stability and highlights the country's efforts to diversify its energy partnerships beyond China. This development also signals potential shifts in the energy supply chain within the region, with implications for countries like Iraq that rely on imported gas for their energy needs.