Turkmenistan hopes to double swap gas supplies through Iran, which, in turn, offers to pay for gas debt by barter

Turkmenistan has expressed a desire to increase swap supplies of its gas abroad through Iran. Iranian Minister of Oil Javad Oudji stated this following the results of negotiations with Deputy Prime Minister for Oil and Gas Affairs of Turkmenistan Shahym Abdrakhmanov .

The meeting was held on June 14 as part of a two-day visit to Tehran by a delegation from Turkmenistan headed by President Serdar Berdimuhamedov .

According to the Mehr news agency , Oudzhi said that at the moment an agreement is in force, according to which 1.5-2 billion cubic meters of Turkmen gas are annually delivered through Iran to Azerbaijan in a swap.

On June 4 of this year, Oudzhi visited Baku and said that during the visit, the Azerbaijani side offered to double gas supplies from Turkmenistan.

Shahym Abdrakhmanov, according to the Iranian minister, also expressed interest in increasing swap deliveries to Azerbaijan and other countries.

Oudzhi, in turn, at the talks with Abdrakhmanov said that Iran has the necessary infrastructure for this, but emphasized the interest of the Iranian side in resuming direct supplies of Turkmen gas to Iran.

In January 2017, Turkmenistan stopped gas supplies to Iran due to a dispute between Turkmengaz and the National Iranian Gas Company. In 2018, the parties filed claims against each other in the International Arbitration Court, which in 2020 allegedly (neither party disclosed the final decision) sided with Turkmenistan. The Turkmen side demanded to pay $1.8 billion, which Iran owed for gas supplies in excess of the norm.

In October 2021, the parties discussed the possibility of resuming gas supplies. The Iranian side offered to repay the debt by barter, providing engineering and technical services in the areas of offshore and onshore development, oil and gas purification and processing.

Regarding the payment of the Iranian gas debt to Turkmenistan, Oudzhi stated the following: “According to the negotiations, the receivables from the gas exports to Iraq on debts for gas will be transferred from Iraq to the account of the Turkmen side” to Iraq for gas debts will be transferred from Iraq to the account of the Turkmen side"). Obviously, this means that Turkmenistan will receive payment of Iraq's debt to Iran for gas supplies.

In addition, the Iranian oil minister once again offered engineering and technical services from Iranian companies for the development of oil and gas fields, the construction of petrochemical plants and oil refineries.

“Our proposal, fortunately, was accepted by the Turkmen side,” summed up Javad Oudzhi.

Source: Chronicles of Turkmenistan