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FINANCIAL NEWS
Shell to launch USD12.5b Iraqi natural gas project
20 Jun 2011
(MENAFN) Royal Dutch Shell’s Plc vice president and country chairman, Hans Nikjamp, said that Shell would start a USD12.5 billion natural gas project in Iraq along with its partner Mitsubishi Corp., reported Bloomberg.
Nikjamp added that the project, which contract was signed in 2010 but was postponed, would involve developing and capturing gas which was flared, or burned off in southern Iraq, adding that the quantity of flared gas in south Iraq was estimated at around 700 million cubic feet per day, and it would be sufficient to generate about 4,500 megawatts.
He also said that Shill would launch the installment of 15 production wells and pipelines in the Majnoon oilfield in southern Iraq this July. Moreover, it would improve two degassing stations and construct a new central processing facility that would include two new 50,000 bbl/d capacity early production systems.
It is worth noting that in order to supply fuel to generate electricity, the government of Iraq is willing to develop its gas resources. The country’s power plants were unable to meet domestic demand and ending blackouts has become a political priority.
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