Shell Iraq announced a Final Investment Decision (FID) taken by the Basrah Gas Company (BGC) on its growth programme, which will increase BGC’s current capacity by 40 per cent.
FID was taken on 31st January 2019, with support of all shareholders in the BGC Joint Venture: South Gas Company, Shell and Mitsubishi.
The programme will capture flared gas from the three major oilfields Rumaila, West Qurna 1 and Zubair and convert it into dry gas for power generation and liquids for the domestic market and for exports.
At the heart of the new development is the Basrah Natural Gas Liquids (Basrah NGL) project; a 400 million standard cubic feet per day greenfield gas processing plant at Ar Ratawi, equipped with two trains, each with a gas processing capacity of 200 mmscf/d.
The growth programme also enables a step-change to more, higher-margin refrigerated liquefied petroleum gas (LPG) exports from the refurbished and expanded storage and marine terminal at Um Qasr port in Basrah.
“With BGC having recently achieved a new production level of over 1 bcf/d, Shell Iraq is proud to have now also reached this growth milestone with an industry-leading competitive project which can reduce gas flaring from the three Basrah oil fields, thus increasing dry gas supply and NGL export capabilities,” said Marcus Antonini, vice president for Shell Iraq.
BGC is a public/private joint venture, unique in Iraq, which was established in May 2013. It is the principal gas collection hub in Iraq and is made up of South Gas Company, the majority shareholder with 51 per cent, Shell with 44 per cent and Mitsubishi with 5 per cent.