Iraq’s Basra Gas Company (BGC), a joint venture between the state-run South Gas Company (SGC), Shell and Mitsubishi, has been processing around 11.3mn cubic metres per day of gas and has claimed it is on track to treat 56.6mn cubic metres per day by 2017
Ali Khudhier, general director of SGC, said, “Iraq should stop importing LPG in second half of 2014. We are producing now around 5,663 cubic metres of LPG and we expect to reach production of 8,495 cubic metres in second half of 2014”
“The produced LNG will be exported to east Asia by ships,” Khudhier was quoted as saying by Reuters.
The US$17bn project started processing small amounts of raw gas in mid-2012, and was now producing gas suitable for power plants along with LPG, cutting Iraq’s fuel import requirements.
The deal also gave BGC the right to build an LNG export terminal fed with at least 17mn cubic metres of gas in a few years time.
