Iran and Turkmenistan have agreed to boost power exchange by laying a new transmission line and renewing power trade agreement in 2023.
Energy Minister Ali Akbar Mehrabian made the statement on the sidelines of his meeting with Charymyrat Purchekov, deputy chairman of Turkmenistan’s Cabinet of Ministers in charge of construction, industrial and energy complexes, in Ashgabat on Wednesday, IRNA reported.
“The two sides agreed to lay an electricity transmission line from Mary State Power Plant in Turkmenistan's Mary City to Mashhad in Khorasan Razavi Province of Iran,” Mehrabian added.
According to the minister, the deal to import electricity from the neighboring state will be renewed soon.
“Iran's power exchange with Turkmenistan will increase three times the current levels upon the completion and operation of a 400-kilovolt power transmission line. Developing the power line is a priority for the two sides, as it will help triple electricity exchange between the two neighbors,” he said
Iran’s current electricity exchange rate with the Central Asia state is 350 megawatts that will rise to around 1 gigawatt, as soon as the transmission line comes on stream.
"Feasibility studies on the 400-kV line, known as Mary-Sarakhs power transmission line, have been completed," the minister said, adding that Iran established the transmission line within its territory at a cost of $100 million.
Iran is also connected to Armenia through two electricity lines and a third connection is in the works to help materialize the prospective Iran-Russia power line.
Iran is the largest exporter and importer of electricity in the Middle East and exports electricity to Pakistan, Turkey, Iraq and Afghanistan.
Azerbaijan and Armenia supply electricity to Iran under a swap agreement.
Gas Swap Deal
The natural gas swap deal between Iran and Turkmenistan for up to 2 billion cubic meters per year took effect on Jan. 2, 2022.
The contract was finalized on the sidelines of the Economic Cooperation Organization’s Summit in Dushanbe, Tajikistan, on Nov. 28, 2021.
Under the swap deal, the National Iranian Oil Company will receive gas from Turkmenistan and deliver an equivalent amount to Azerbaijan at the Astara border.
Turkmenistan will sell 5-6 million cubic meters of gas per day to Azerbaijan under the trilateral agreement signed in Turkmenistan.
Turkmenistan has been exploring options on gas swap deals with Iran to export fuel to markets further afield. Because of economic challenges, Turkmenistan has been seeking more buyers for its natural gas riches other than China.
Iran has major natural gas fields in the south, but has imported gas from Turkmenistan since 1997 for distribution in northern provinces, especially during the winter.
Oil and gas swap can be an important source of revenue, as northern neighbors with abundant hydrocarbon resources need access to the sea in the south.
Pointing to large-scale access to equipment and pipelines in the country, the Iranian Oil Ministry has made it clear that the government is keen on resuming swap operations with northern neighbors.
According to the ministry’s website, Iran is willing to start swapping oil and gas from Caspian Sea littoral states, provided Russia, Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan cooperate with Iran in this regard.
