After 12 years of open-ended negotiations, Shell has informed the Iraqi government that it is no longer interested in pursuing the 1.5mn t/y Nebras ethane cracker in Basra, for which an MoU was first signed in 2012 (MEES, 21 September 2012). The $11bn project was to receive ethane feedstock from the Basrah Gas Company (BGC) JV where Shell is a 44% partner alongside state-owned South Gas Company (51%) and Mitsubishi (5%).
A 13 February statement from the Ministry of Industry announced Shell’s exit from talks which also involved “consultant Genesis” as Baghdad’s project advisor, a possible reference to the Technip Energies subsidiary of the same name. The statement says that Iraqi PM Mohammed al-Sudani has instructed the ministries of industry and oil to re-assess the project and “study other options that are more responsive [to Iraq’s] new gas landscape after signing the investment contract with TotalEnergies.” (CONTINUED - 398 WORDS)
