Page 11 - MEOG Week 34

MEOG ProJeCts & ComPanIes MEOG
Power supply secured for Basra NGL plant
Iraq
STATE-BACKED Basrah Gas Co. (BGC) this week signed a deal with Shamara Holding for supplying electricity to the Basrah Natural Gas Liquids (NGL) plant.
e facility forms part of the South Gas uti- lisation Project (SGuP) on which a nal invest- ment decision (FID) was taken by super-major Royal Dutch Shell in January.
e $17.5bn development is being executed by the Basra Gas Co. (BGC) joint venture (JV) of state-owned Basrah Oil Co. (BOC), Shell and Japan’s Mitsubishi, and will treat, process and distribute associated gas from the giant Rumaila, West Qurna 1 and Zubair oil elds.
e latest stage comprises Basrah NGL, cov- ering the installation of the two-train gas-pro- cessing plant at Al-Ratawi in the west of Basra to process an additional 4.1bn cubic metres per year of gas.
According to the statement on the FID, the scheme would entail an increase in production of higher-margin LPG for export, as well as pro- viding feedstock for domestic power plants.
On February 27, BGC signed a contract with
China Petroleum Engineering & Construction Corp. (CPECC) to carry out the work, scheduled for completion in late 2020.
Once the NGL plant is operational and hooked up to the Iraqi gas network, it will feed power stations to generate 1.5 MW or more of electricity, according to BGC managing director Frits Klap. He added: “ e new plant will have two trains that will require around 70 megawatts of electricity to run e ciently.”
In July, the Iraqi Ministry of Oil (MoO) announced a deal with Honeywell and Bechtel that would see the uS services rms increase the utilisation of associated gas from ve oil elds in Basra Governorate.
In a statement, the MoO said that the addi- tional 600mn cubic feet (17mn cubic metres) per day will come in two stages, with each adding 300 mmcf (8.5 mcm) per day.
Honeywell and Bechtel will work together on the project, which is aimed at reducing gas ar- ing from the oil elds by up to 20%, and signed a joint memorandum of understanding (Mou) with the MoO on July 17.™
PrICes
Date
WTI (US$)
ICE Brent (US$)
DME Oman (US$)
OPEC Basket (US$)
20 July
56.34
60.03
60.00
59.94
21 July
55.68
60.30
60.76
60.66
22 August
55.35
59.92
60.61
60.50
23 August
54.17
59.34
59.64
59.67
26 August
53.64
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Week 34 27•August•2019 w w w . N E W S B A S E . c o m P11