Turkmenistan and Iraq have moved closer to a deal on natural gas exports

Turkmenistan and Iraq have reached a preliminary agreement on the export of natural gas to meet Iraq's domestic energy needs. This is reported by the publication Orient.

The deal will allow Turkmenistan to supply natural gas that Iraq will use as fuel for its power plants and electricity grid. Although the volume of exports and other details have yet to be agreed, both sides said they expect to finalize the contract by the end of 2023.

A memorandum of cooperation is also being drafted and is expected to be signed later this year, which will lay the groundwork for a natural gas supply agreement.

Analysts say the budding energy partnership is an important step for Iraq as it seeks to expand and diversify its natural gas supplies. Turkmenistan has significant natural gas reserves and is seeking to increase its exports.

This agreement could provide a new stream of stable gas imports for the Iraqi energy sector. For Turkmenistan, it is an opportunity to gain a new buyer in the region.

Negotiations are underway on the exact amount of natural gas to be exported. Iraq's deputy oil minister for gas supplies, Ezzat Sabir, said the supplies would be a "significant boost" for the country as Iraq works to modernize its electricity infrastructure.