Since the agreements were signed at the end of November 2011, SGC and Shell have increased production capacity from ca 240 million scf/d to around 400million scf/d of gas throughput, initiated a number of safety training activities to raise awareness and safety standards at operations with more than 8,500 training courses completed. Lastly, a number of critical projects have already started, like the new power plant at the Khor Al Zubair (KAZ) gas plant, compressor stations in North Rumaila, as well as leasing compressors to reduce gas flaring in the Zubair field.
In the future, the project also includes the option to build an LNG plant for potential export once domestic energy needs are met, which will create a new income stream and help the country increase the pace of its economic growth.
Basrah Gas Company Managing Director, Mr. Gasser Hanter, said:
“The birth of this JV is a clear testament to the determination of the Iraqi Government to develop the country’s energy sector and a true reflection to the significant improvement in the security situation that is stimulating investments in Basrah.
"Our main priority is to harness Iraq’s wasted gas resources and provide its people with much-needed reliable and clean energy, whilst helping to reduce the environmental impact caused by the flared gas in Basrah.”
BGC is expected to create significant value for Iraq and help improve the local economy through providing a reliable and clean gas supply for power generation, thereby considerably reducing gas flaring. This in turn will help enhancing Basrah’s air quality, building the local staff capabilities to international standards and hiring local suppliers.
Mr. Hans Nijkamp, Shell Iraq Chairman said:
“I am very pleased to see this project becoming a reality. Shell is committed to provide BGC with technology, funding, international best practices, and experienced personnel who can help build the required capabilities across the organization which compliments SGC’s long experience on the ground in Iraq, resulting in increased energy supply to the Iraqi people”.
(Source: Shell)
(Picture: Gas flaring at Rumaila)
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