Basrah Gas signs loan agreement with IFC for project to limit gas flaring - Iraqi News Agency

Iraq continues to flare some of gas extracted alongside crude oil

  
Image used for illustrative purpose only.An Iraqi worker stands in the shade of the Basra oil refinery

Image used for illustrative purpose only.An Iraqi worker stands in the shade of the Basra oil refinery

REUTERS/Damir SagoljDS/JV - RTRNHRV

DUBA - Iraq's Basrah Gas Co. signed an agreement with the International Finance Corporation for a loan to fund a project to limit the flaring of natural gas, the state-run Iraqi News Agency reported on Tuesday.

Iraq continues to flare some of gas extracted alongside crude oil because it lacks the facilities to process it into fuel for local consumption or exports.

Gas flaring costs nearly $2.5 billion in lost revenue for the government and would be sufficient to meet most of needs for gas based power generation, according to the World Bank.

(Reporting by Maher Chmaytelli, editing by Louise Heavens) ((maher.chmaytelli@thomsonreuters.com;))