Iraq's Basrah Gas Company, which consists of a joint venture of South Gas Company, Shell and Mitsubishi, will be increasing their gas production capacity by 40% as a result of a decrease in gas flaring throughout Iraq's southern fields.
As part of its programme, the BGC will capture flared gas from West Qurna 1, Zubair and Rumalia which will be converted and used for power generation both domestically and for export.
Approximately 70% of gas produced in Iraq is being flared as a result of a lack of infrastructure to capture and utilize the product. The current level of flaring costs the country billions of dollars per year in lost revenue and also has a significant environmental impact with high levels of greenhouse gases produced in emissions.
The BGC programme will seek to address both of these issues by converting more of the flared gas to Basrah Natural Gas Liquids (BNGL) and Liquified Petroleum Gas (LPG) which can be used to generate power in areas with significant power shortages and exported for sale on the global market.
The BGC venture also contributes strongly to the local economy with around 5,500 Iraqi staff employed and trained by the company, in addition to around 400 experts from Shell.