Iran has signed a major gas swap deal with Tukmenistan under which Iran will supply up to 10 billion cubic meters (bcm) of natural gas to Baghdad, Iraq in return for receiving the same volumes from Ashgabat, Tukmenistan.

Furthermore, Iranian companies will construct a new 125-kilometer gas pipeline along with three gas pressure booster stations in Turkmenistan aimed at boosting annual gas shipments to Iran reaching 40 bcm.

The contract was signed in Turkmenistan following extensive negotiations between Tehran and Ashgabat.

Iran’s Ambassador to Turkmenistan Ali Mojtaba Rouzbehani described the gas swap deal as a significant step towards further developing cooperation between Iran and Turkmenistan in the gas sector.

He also highlighted the role played by the late President Ebrahim Raisi and foreign minister Hossein Amirabdollahian in pushing the deal.