Iraq is moving to reactivate its long-delayed natural gas import agreement with Turkmenistan as Baghdad searches for urgent solutions to its worsening electricity shortages during the peak summer season, according to information published by Iraqi News.
The proposed arrangement would allow Turkmen gas to reach Iraq through a swap mechanism involving Iran. Under the scheme, Turkmenistan would deliver gas to Iran, which would then supply equivalent volumes to Iraq through its existing pipeline network. The project has faced repeated delays because of U.S. sanctions on Iran and uncertainties surrounding the approval of the transit mechanism.
According to Iraqi News, recent diplomatic developments between Washington and Tehran have raised hopes in Baghdad that the agreement could be revived, helping Iraq address a severe electricity deficit. Iraq’s power demand during the summer exceeds 55,000 megawatts, while actual generation remains in the range of 16,000–17,000 megawatts, creating a substantial supply gap.
A Project Years in the Making
The effort to bring Turkmen gas to Iraq has evolved through several stages over the past three years.
In November 2023, Turkmenistan and Iraq agreed on the commercial framework for supplying approximately 9 billion cubic meters (bcm) of natural gas annually for five years through Iran under a swap arrangement.
The initiative advanced further in July 2024 when Turkmenistan and Iran signed a formal contract providing for the delivery of up to 10 bcm of Turkmen gas per year to Iraq via Iranian territory. The agreement was viewed as a significant step toward diversifying Iraq’s energy sources while creating a new export avenue for Turkmenistan.
Subsequently, Iraq and Turkmenistan signed additional energy cooperation agreements, and Iraqi officials indicated that imports could reach between 14 and 20 million cubic meters per day, potentially supporting an additional 2,000 megawatts of electricity generation.
Why the Deal Matters
Iraq remains heavily dependent on imported Iranian gas, which fuels a significant portion of its electricity generation capacity. Any interruption in these supplies has immediate consequences for power production, particularly during the intense summer months when temperatures frequently exceed 50°C and electricity demand surges.
The Turkmen gas agreement was conceived not only as an emergency supply measure but also as part of a broader strategy to diversify Iraq’s energy imports and reduce vulnerability to disruptions. Iraqi officials have repeatedly emphasized that Turkmen gas remains one of the most practical options available because the necessary transit infrastructure through Iran already exists.
Significance for Turkmenistan
For Turkmenistan, the agreement fits squarely within Ashgabat’s long-standing policy of diversifying gas export destinations. The country possesses some of the world’s largest natural gas reserves and has sought to expand beyond its traditional markets by developing multiple export corridors.
The Iraq project is particularly important because it demonstrates Turkmenistan’s growing use of innovative swap arrangements to reach new customers without constructing entirely new long-distance pipelines. Similar mechanisms have previously been employed in regional gas trade involving neighboring countries.
Diplomatic Hurdles Remain
Despite renewed optimism, significant challenges remain. Previous attempts to activate the agreement were effectively stalled because Washington was reluctant to authorize a mechanism that would involve Iranian transit and potentially provide economic benefits to Tehran. In 2025, reports indicated that U.S. approval had not been forthcoming despite extensive Iraqi lobbying efforts.
As a result, the future of the project will depend not only on technical and commercial arrangements among Iraq, Iran, and Turkmenistan, but also on the broader geopolitical environment and the evolution of U.S.-Iran relations.
For Iraq, the stakes are immediate: securing additional gas supplies could help alleviate chronic electricity shortages that have long been among the country’s most pressing domestic challenges. For Turkmenistan, successful implementation would mark another step toward expanding its presence in regional energy markets and reinforcing its role as a major supplier of natural gas beyond its traditional export routes. /// nCa, 22 June 2026