Iraq’s Ministry of Oil has announced the launch of an accelerated gas processing and transport project southern Iraq aimed at increasing supply to the power sector and reducing flaring.

The project is being implemented by the South Gas Company in partnership with the Oil Projects Company, focusing on capturing and processing additional volumes of associated gas from oil fields.

The ministry said in a statement the project will supply around 55 million cubic feet per day (MMcfd) of dry gas to power plants, helping stabilise electricity generation across the country.

It includes the transport and processing of associated gas from Bin Omar field, the Majnoon field and the North Rumaila field in Basra Governorate through a new pipeline network.

The project will be executed in two phases, with the first phase covering 4.5 kilometres and the second phase extending a further 4 kilometres.

According to the statement, the first phase will be completed within 15 days, as part of efforts to expedite implementation. 

The project will also add approximately 600 tonnes per day of liquefied gas (LPG) to national production, the ministry's statement said.

On Monday, a Zawya Projects report said a sharp drop in Iranian gas supplies as a result of the ongoing regional conflict reduced Iraq’s electricity generation by 3,500 megawatts (MW).

(Writing by Majda Muhsen; Editing by Anoop Menon) 

(anoop.menon@lseg.com)

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