Oil ministry spokesperson of Iraq, Asim Jihad remarked that Iraq loaded its first export cargo of 10,000 cu feet of LPG Sunday. The shipment from the port of Al-Qasr in the Persian Gulf, marks Iraq’s first step towards delivering regular LPG volumes to global markets.
Jihad also mentioned, “This is the fruit of the joint efforts of national cadres in the Basra Gas Company, in collaboration with Shell and Mitsubishi.”
On the month of December, Oil minister Adel Abdul Mahdi said that LPG production in Iraq was outpacing domestic consumption, but was not stable so the country occasional imports cargoes. He also informed that this is anticipated to be stopped from this year.
In October, Iraq’s State Oil Marketing Organization issued a tender seeking 180,000 mt of LPG to be delivered to the Khor al-Zubair port in 2016. In 2015, it imported around 445,000 mt of LPG.
Basrah Gas Company, a Shell-led consortium, aims to capture and process gas flared from the Rumaila, Zubair and West Qurna 1 oil fields for use in power plants and industrial units, and also export.
Since 2013, when it started its operations, the company has doubled the amount of gas it has captured and processed, reaching more than 600 MMcf/day. It plans to increase that to more than 2 Bcf/d with the addition of new facilities.
LPG production has also risen to 3,300 mt/d in 2016, from 2,200 mt/d in December.
With excess LPG, Iraq can now use the rehabilitated storage and marine terminal built in the 1980s at Umm Qasr for exports. Till now, the terminal only received imports of LPG and gasoline to supplement Iraq’s own production.