November 16th, 2011

Basrah Gas Co

 

By

The Basra Gas Company project is a great milestone to Iraq’s gas industry and a remarkable achievement for the country in its endeavor to monetize its natural resources. The utilization of associated gas is a huge challenge to the oil industry and many oil-producing countries worldwide. Russia, a leading world gas producer and exporter, flares 3500 million cubic feet of associated gas daily, about five times the amounts Iraq is flaring. Other gas-flaring countries include Iran, Kuwait, Qatar, Saudi Arabia, Algeria and many other OPEC and non-OPEC countries. Most of those who opposed the BGC joint venture did not have enough knowledge about the complexity of the economic and commercial sides of associated gas utilization projects and the technical nature and the risks characterizing the long chain of gas production, processing, transportation and marketing.

The upcoming elementary task for Iraq now is to define domestic gas demand in the most efficient and constructive process so that not to end up flaring costly processed gas and losing valuable revenues from gas exports. Iraq’s gas production capacity expansion qualifies the country very well to emerge as a gas producer and exporter.

The Forum