DUBAI - Iraq's Basrah Gas Company will increase its capacity by 40 percent as part of an investment plan, Royal Dutch Shell said on Tuesday.

Basrah Gas Company is a joint venture between state-owned South Gas Company, Shell and Mitsubishi.

A final investment decision was taken on January 31 to undertake this growth programme, Shell said.

Flared gas will be captured from three oilfields and converted into dry gas for power generation and liquified petroleum gas for both export and domestic use.

Shell did not specify the time frame for the increase.

(Reporting by Rania El Gamal; Writing by Tuqa Khalid and Nafisa Eltahir; Editing by Louise Heavens) ((Tuqa.Khalid@thomsonreuters.com; +971521047568;))