Iraq Gas Deal Signed

Photo : dinarddiscussions.com

Reports in Arabianoilandgas.com have confirmed that Shell and Mitsubishi are set to sign a deal for a huge project to capture the gas that is currently flared in the south of Iraq. The south of Iraq holds some 70% of the country's gas reserves

Iraq desperately needs this gas to provide power, which is chronically short supply at present, with electricity supplies to much of industry being currently rationed down in summer months, in order to ensure that sufficient power is available for domestic customers.

This mammoth project will create huge logistical challenges but is an essential part of Iraq's reconstruction. Initially, the extra gas will be required for electricity generation. However as more gas becomes available, this will also create many opportunities for downstream investment.

The Iraq Government is already giving incentives for foreign investment in the downstream sector, recognising the societal benefits that this investment will bring to the country. This investment will take some time and effort to complete but new refineries with integrated crackers and downstream plants will appear on the horizon.