By John Lee.
The Basra Gas Company (BGC) — a joint venture between the state-run South Gas Company (SGC), Shell and Mitsubishi — is processing around 400 million cubic feet per day (mcfd) of gas, and is on track to treat 2 billion cubic feet per day by 2017.
SGC general director, Ali Khudhier, told Reuters:
“Iraq should stop importing LPG in second half of 2014. We are producing now around 2,000 tonnes of LPG and we expect to reach production of 3,000 tonnes in second half of 2014.
“The produced LNG will be exported to east Asia by ships.“
The $17-billion project started processing small amounts of raw gas in mid-2012, and is now producing gas suitable for power plants along with liquid petroleum gas (LPG), cutting Iraq’s fuel import requirements.
Providing Iraq’s own modest gas needs are met first, the deal also gives BGC the right to build a liquefied natural gas (LNG) export terminal fed with at least 600 mcfd of gas in a few years time.
(Picture: Gas flaring at Rumaila)