Home Oil and Gas BHGE wins Iraq flare gas recovery contract

BHGE wins Iraq flare gas recovery contract

The Iraq Government has provided a permit to its nod to the natural gas exploration contract signed between the Netherlands and Japan’s Mitsubishi Corporation (Mitsubishi).

The project, which requires the capital expenditure of almost $17.2 billion, was initially signed in 2008.

The joint venture (JV), Basra Gas Company (BGC) has state-controlled by shared interests:

South Gas Company (SGC) 51%
Shell 44%
Mitsubishi 5%

$17.2 billion capital expense gas flare recovery project includes two main packages:

$12.8 billion for oil field upgrading and flared gas gathering
$ 3 billion for a Floating liquid petroleum gas(LPG) plant and Terminal to be paired offshore the Basra coast
The first package will aim to upgrade and improve infrastructural facilities of the oil fields at a cost of a certain $12.8 billion, thus raising output.

This 25-year agreement include will work near to capture more than 700 million cf/d of natural gas from three of the most generative southern acreages namely Rumaila, Zubair and West Qurna Phase 1.

On the second package Shell and Mitsubishi will also prepare a liquefied natural gas facility, with a maximum capacity of 600 million cf/d natural gas.

The liquefied natural gas plant should cost approximately $3 billion in capital expense and is expected to be completed in 2017.

Under the present scenario, a large volume of natural gas, estimated at $1.8 billion per annum, is being flared due to the shortage of a proper gas processing plant.

thus, the project will also include intensifying and LPG facilities to treat the involved gas.

Shell pronounced first orders to GE and ABB
Shell is keeping the first measures to equipment the project:

Baker Hughes, a GE Company (BHGE) said it was assigned an agreement by the South Gas Company of Iraq to help recover flare gas for Nassiriya and Al Gharraf oilfields.

he contracts associated BHGE developing solutions using advanced modular gas processing technology from the United States and Italy, the company said in a statement.

The project will utilize the modular skid-mounted Gas Processing technology to construct 200 million standard cubic feet per day (MMSCFD) NGL plant and is required to be completed by 2021.

“A local trusted partner to Iraq, BHGE is bringing advanced technologies and solutions that can help meet the Ministry’s goals for the industry,” said Rami Qasem, president for MENAT & India, BHGE said, adding that the contract will generate more than 500 direct and indirect jobs for Iraqis to construct possibility and strengthen the local supply chain.

The project will support the development of an absolutely integrated natural gas liquid NGL plant at Nasiriya that will recover 200 MMSCFD of dry gas, liquefied petroleum gas LPG, and intensify. The modular solution will support power plants with dry gas for veteran power creation, thereby helping meet the growing requirement for electricity using clean fuel.

It will also allow us to subtract the amount of gas flared in the fields of Nassiriya and Gharraf that otherwise goes to waste.

The advanced technology applied to develop the plant will help generate more than 1,000 tons of liquid petroleum gas(LPG) per day and save more than 900 cubic meters per day of intensifying, which will help to meet the home requirement for cooking gas, BHGE said.

The surplus liquid petroleum gas (LPG) and intensify will be exported, producing high revenue for the Iraqi government.

Jabbar Al-Luaibi, Iraq’s Minister of Oil said, that this project is an important achievement for the Ministry and marks the entry of a new position for the sector, highlighted by time-optimal utilization of flare gas, which is a general milestone in the government’s extensive efforts to drive a better future for Iraq.


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