In what is believed to be a landmark loan, Iraq's Basrah Gas Company (BGC) will be receiving $360 million intended to support one of the largest gas flaring reduction projects ever initiated worldwide.
BGC is a joint venture between the Iraqi government, Shell and Mitsubishi created to treat and process associated gas that would have been otherwise flared.
Iraq has a significant reserve of natural gas which is mainly a by-product of legacy oil extraction but since they don't have the necessary infrastructure to capture and process this gas about 70% of them were instead flared.
The project will benefit the world as it is expected to reduce greenhouse gas emissions by around 10 million tons per year supporting Iraq's transition to a lower carbon path. This in turn will improve the country's access to domestic energy sources helping it to meet its growing power needs.
Iraqi Oil Minister Ihsan Abdul Jabbar Ismail expressed his view that this loan opens new horizons for cooperation and collaboration serving common purposes and interests as it reiterates Iraq's commitment to increased investment in associated gas flaring reduction leading to the objectives set by the Paris Agreement.