Since Turkmenistan's independence from the Soviet Union in 1991, the two countries have enjoyed good relations and have cooperated in economic, transportation, infrastructure development, and energy sectors.

Balkanabad-Aliabad power transfer line and several other projects such as the program of fiber-optic communications development, construction of bunkers and other objects in Merve and a refinery in Turkmenbashi, construction of liquefied gas terminals, highways are instances of growing bilateral relations.

It links Uzen in Kazakhstan with Bereket - Etrek in Turkmenistan and ends at Gorgan in Iran's Golestan province.

[10][11]The project also aims to create a multimodal transport system to provide seamless connectivity in the region for passenger travel as well.

A 311 km (193 mi) section between Bereket and Buzhan in Turkmenistan is being financed by the Asian Development Bank (ADB).

A memorandum of understanding was signed between ADB and the Turkmenistan government in February 2010, for a $350m loan as a special fund for technical assistance.

[15] Under a swap agreement, Iran currently imports 5-6 million cubic meters per day of natural gas for domestic consumption from the northeastern neighbor while exporting the same amount from its own natural gas supply to Azerbaijan in Iran's northwest.