Page 9 - DMEA Week 04 2021
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DMEA                                             POLICY                                               DMEA


       Baker Hughes to build Iraqi gas




       processing plant




        IRAQ             US firm Baker Hughes has landed a contract to  Gharraf. The plan was to use modular skid-
                         build a new 200mn cubic feet per day (2.07bn  mounted gas processing technology for a fully
       Iraq is the world’s   cubic metres per year) gas processing plant in  integrated NGL plant at Nasiriya that would
       second-worst flarer after   Iraq’s Dhi Qar Province.   recover 200 mmcf per day of dry gas, as well as
       Russia.             The contract was awarded by South Gas Co.  LPG and condensate. This previous iteration of
                         (SGC), owned by the Iraqi oil ministry. Baker  the project was scheduled to be completed by the
                         Hughes’ Turbomachinery & Process Solutions  end of 2021.
                         (TPS) team will design, manufacture, deliver,   Iraq is the second-worst gas flarer globally
                         construct and commission the plant’s equip-  after Russia, burning some 18 bcm of gas in 2019,
                         ment. It will also supply compression equip-  according to the World Bank. Using only 40% of
                         ment, digital monitoring systems and provide  this gas, Iraq could generate an extra 3.5 GW of
                         other services.                      power, General Electric has estimated.
                           Once completed, the plant will process gas   Iraq has some 18 GW of generation capac-
                         that was previously flared at Iraq’s Nassiriya  ity but its needs exceeded 30 GW in 2020. It
                         and Gharraf oilfields. It will lead to a cut in CO2  relies heavily on imports from Iran, for which it
                         emissions of over 6mn tonnes per year (tpy), the  must regularly obtain waivers on US sanctions
                         service provider said. No further details of the  to receive. The government has a plan to add 11
                         project were disclosed.              GW of generation capacity over the next four
                           The latest award follows a contract Baker  years, but the coronavirus (COVID-19) pan-
                         Hughes secured from SGC in 2018 to develop  demic and the resulting economic collapse has
                         solutions for flare-gas recovery at Nassiriya and  stalled plans. ™


                                                          LNG

       Egypt poised to ramp up LNG exports



       in coming weeks: oil minister





        EGYPT            EGYPT  is preparing to expand its LNG  pandemic. Its next shipment was not until July,
                         exports in recent weeks, to exploit a recent  followed by another three-month hiatus until
       Cargoes have been   rebound in prices and its increasingly abun-  October.
       booked for Idku until   dant supply, its oil minister, Tarek el-Molla,   According to Vortexa data, the Idku plant
       the end of March, and   said on January 27.            only dispatched 19 cargoes in 2020, versus 54 a
       Damietta will restart by   Cargoes have been booked for delivery from  year earlier.
       the end of February.  the Idku export terminal until the end of March,   The 5mn tpy Damietta facility has been idle
                         while the Damietta terminal is due to restart by  since 2012, when it was closed down because
                         the end of February, el-Molla explained.  Egypt lacked the gas supply to keep it running.
                            “In 2020, the prices were very stressed, very  The situation is now very different, following a
                         low, and we were not able to export, except a few  surge in Egyptian offshore gas production over
                         cargoes throughout the year,” the ministry said.  the last few years.
                         “Starting from October 2020 until now, we have   Italy’s Eni reached deals with Spain’s Naturgy
                         already booked all our volumes to be exported  and its Egyptian partners in December that have
                         from the Idku plant. We have already [booked]  paved the way for the plant’s restart by settling
                         cargoes to the end of March.”        a long-running legal dispute over its earlier clo-
                            The 7.2mn tonne per year (tpy) Royal Dutch  sure. Under those agreements, Naturgy left the
                         Shell-operated Idku plant halted exports in late  project and its share was divided up between
                         March, in response to the collapse in global LNG  Eni, Egyptian Natural Gas Holding and Egyptian
                         prices triggered by the coronavirus (COVID-19)  General Petroleum Corp. ™








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