Project Profile
Value: US$17.5 billion
Location: Basra
Start-up year: 3Q 2013
Once established, the JV will gather, treat and process raw gas produced in Basra and sell the processed natural gas and associated products such as condensate and Liquefied Petroleum Gas (LPG) for use in the domestic and export markets. In the future, the JV could develop a liquefied natural gas (LNG) facility to also export natural gas to create a new benefit for Iraq’s economy.
Some 700 million standard cubic feet per day of natural gas, which is produced by upstream suppliers in association with oil, is currently flared every day in southern Iraq. By capturing and processing this natural gas, the JV aims to create an important and reliable supply of domestic energy, reduce unnecessary greenhouse gas emissions and create significant value for Iraq.
Shell Gas Iraq is a wholly owned Shell Company participating in the Iraq South Gas project, and will be the Shell shareholder (44%) in the Basrah Gas Company.
The other shareholders in the Basrah Gas Company will be the Iraqi South Gas Company (51%) and Diamond Gas Iraq a subsidiary of Mitsubishi Corporation (5%).
Operators:
Basrah Gas Company Joint Venture:
Shell: Operator with 44% interest
Iraqi South Gas Company: 51% interest
Mitsubishi Corporation: 5% interest
Contractors:
ABB (Iraq): EPC contract