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OPEC member Iraq on Tuesday approved the import of gas from Turkmenistan via nearby Iran to fuel its mushrooming power stations.
In a report on Wednesday, Shafaq News and other local publications said the cabinet meeting under Prime Minister Mohammed Al-Sudani, endorsed the plan without mentioning the quantities to be purchased.
Imports will be based on “swap” transaction through the Dubai-based Loxstone Energy Company via Iran, the report said. In a physical swap transaction, gas at one location is traded for gas at another location.
“Gas supplies from Turkmenistan via Iranian territory will guarantee the continued operation of electricity stations in the country,” the report added.
The contract between Iraqi electricity ministry and Loxstone Energy will be governed by Swiss laws
Iraq signed a MoU in 2023 with Turkmenistan for the supply of gas to power its electricity plants and offset a shortage of Iranian supplies.
Iraq has awarded several contracts in the past month to global firms to develop its gas reserves, estimated at nearly 3.5 trillion cubic metres.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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