TEHRAN (Iran News) – Iran, Turkmenistan to Develop Cooperation in Energy. Oil Minister said on Saturday that it is possible to increase the capacity of the Turkmen gas swap through Iran to 15 billion cubic meters per year.
Following the meeting with the Turkmen delegation, Javad Owji said that during the meeting, the two sides discussed the development of bilateral cooperation in the field of energy, especially gas swaps, oil and products and petrochemicals.
The Turkmen delegation is headed by Sardar Berdymukhamedov, Deputy Prime Minister of Turkmenistan, and will be accompanied by Turkmen Foreign Minister Rashid Muradov.
Several rounds of talks have already taken place between Iran and Turkmenistan, focusing on the development of energy cooperation.
The implementation of the Turkmen gas swap through Iran to the Republic of Azerbaijan, which became operational last week, is part of the results of the cooperation.
The agreement between Iran, Azerbaijan, and Turkmenistan on a natural gas swap deal for up to two billion cubic meters of Turkmen gas has taken effect as of January 1, 2022.
As reported, of the total received gas from Turkmenistan, about 20 to 30 percent will be the share of Iran as a swap fee, and the rest will be delivered to Azerbaijan. Azerbaijan will reportedly receive four million cubic meters of new energy supplies per day; however, the figure is currently less than four million and will gradually reach that amount.
The deal, which was backed by the presidents of the three Caspian countries during the 15th Summit of the Economic Cooperation Organization (ECO) in the Turkmen capital city of Ashgabat on November 28, 2021, was signed by the oil ministers of the two countries on November 30, 2021.
Under the swap deal, Iran will receive gas from Turkmenistan and deliver an equivalent amount minus the swap fee to Azerbaijan at the Astara border. The gas that Iran will receive from Turkmenistan under the swap agreement will cater to the needs of the northern provinces of the country.
Iran has major natural gas fields in the south but has imported gas from Turkmenistan since 1997 for distribution in its northern provinces, especially during the winter.
Experts believe that the implementation of the deal could encourage other countries in the region to ink similar deals and to use the Islamic Republic’s capacities in this regard.