Turkmenistan Signs Deal to Supply Gas to Iraq Through Iran Swap Agreement

(Reuters) — Turkmenistan has signed a swap deal with Iran under which Ashgabat will sell 10 billion cubic meters (Bcm) of natural gas a year to Iraq, the Turkmen government said on Wednesday.

Iran, which lies between Turkmenistan and Iraq, has its own substantial gas reserves, and under the swap deal Tehran will supply gas to Baghdad in exchange for receiving the same volumes from Ashgabat.

The Turkmen government provided no detail on pricing, timing or logistics, but said it planned to build a new gas pipeline to Iran and is working to boost annual shipments in that direction to 40 Bcm.

Gas-rich Turkmenistan mostly exports energy to China but is trying to diversify exports by adding sales to Europe, Pakistan and India.

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