Iraq has signed an agreement with Turkmenistan for the supply of 20 million cubic metres per day to power electricity facilities in the Arab country.

Iraq’s Electricity Minister Ziad Fadil signed the deal in Baghdad on Saturday with Maksat Babayev, Turkmenistan’s state minister and chairman of the state-owned Turkmengas, according to Iraq’s media.

“The gas to be imported from Turkmenistan will be used to operate our power stations and consolidate the national electricity network,” Fadil said.

He added that the gas would be supplied via Iran’s pipelines and that the deal is based on the “Swap” transaction system through the Dubai-based Loxstone Energy Company, adding that it would be governed by Swiss laws.

Iraq, OPEC’s second largest oil producer, has awarded contracts over the past months to TotalEnergies and other foreign firms to develop its gas resources and reduce reliance on gas imports from Iran.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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