Iraq Has Lost Billions from Gas Flaring

Feb 15, 2015 | Saadallah Al Fathi
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Last week I discussed the announcement of the Iraq-Shell petrochemical project in Basra and estimated to cost $11 billion (Dh40.3 billion). I surmised that the feed for the project would be ethane, methane, LPG and natural gasoline, all products of gas processing and for which Iraq needs to increase capacity sharply.

But what is the gas situation in the south of Iraq, where Shell is the major player since its famous $17.2 billion deal in November 2011 to gather and process gas from the three southern oilfields of Rumaila, West Qurna 1, and Zubair? The joint venture to establish the Basra Gas Company (BGC) was between the Iraqi South Gas Company, Shell and Mitsubishi with 51, 44 and 5 per cent stakes respectively. The initial goal was to process up to 2 billion cubic feet a day of gas.