Iraq Signs Turkmen Gas Deal to Meet Half of Power Plant Needs

Baghdad – INA
Ministry of Electricity said on Tuesday that a new gas supply agreement with Turkmenistan would cover 50% of the fuel needs for its power plants. The ministry also outlined alternative plans to address Iranian gas shortages and confirmed preparations for the summer season.

“The ministry has an agreement with Turkmenistan to supply gas and is working closely with the Trade Bank of Iraq (TBI) to complete financial procedures, including opening letters of credit and transferring funds to the Turkmen side,” ministry spokesperson Ahmed Musa told the Iraqi News Agency (INA). “Once payments are finalized, gas supplies will begin, covering about 50% of the requirements of gas-powered electricity stations.”

Musa said the ministry is maintaining and rehabilitating power stations to prepare for the summer while addressing distribution bottlenecks and increasing grid capacity. “This will improve flexibility in load management between provinces through expanded transmission lines and new substations,” he added.

The official noted that some power plants remain impacted by disruptions in Iranian gas supplies. “We are coordinating with the Ministry of Oil on alternative plans, including Turkmen gas imports and completing associated financial measures,” he said.

Prime Minister Mohammed Shia’ Al-Sudani has instructed companies to establish liquefied gas platforms at the Port of Faw, a move Musa said would significantly bolster fuel supplies for power generation. He stressed that the ministry’s progress depends on aligning these efforts with a comprehensive fuel strategy to meet electricity demands and improve production rates.