Iraq to add gas processing plants

In an effort to reduce gas flaring at its southern fields, Iraq aims to add three greenfield gas-processing plants, Minister of Oil Jabar Al Luaibi said on Monday.

Capturing and adding value to associated gas has been a long-standing goal of the government, especially as the country presently flares some 70% of the resource, wasting an estimated USD 7 million per day.

“The ministry is seeking to end the flaring of associated gas in the next few years, despite the economic and financial challenges,” Al Luaibi was quoted as saying by Reuters.

While the first investments in gas processing were made in the 1980s, capturing gas did not get underway in earnest until the inauguration of the Basrah Gas Company (BGC), a joint venture between South Gas Company, Shell and Mitsubishi, in May 2013.

BGC operates the North Rumaila NGL plant and the Khor Al Zubair NGL and LPG plants. All three facilities are undergoing rehabilitation work to restore them to nameplate capacity.

In 2016, the company produced 16.1 mcm (570 mcf) of natural gas per day. That year, BGC also facilitated Iraq’s first exports of excess condensate and LPG.