AKnews reports that Shell and Mitsubishi’s giant gas venture in Basra has been criticised for planning to sell gas to fuel-starved Iraqi power plants at too high a price.
The fuel will be sold at $4.38 per million British thermal units (mbtu), less than a third of the $15/mmbtu that is charged in parts of Asia.
However, the price Shell will sell for is similar to the price in the U.S. and much higher than the amount neighboring countries agree to pay for their own gas.
The contract is yet to be verified by the Iraqi parliament.
Please click here to read a detailed analysis of the proposed contract.