Iraq LPG Export Record As Shell’s BGC Plans Fully Refrigerated Exports From 2027-28

25 Oct 2024 Issue: 67 / 43 By: Yesar Al-Maleki

Iraqi LPG output has been boosted by increased gas capture and refining capacity. Amid increased local supply, the dominant player, Shell’s Basrah Gas JV, is looking to hike exports. A new jetty at its Um Qasr marine terminal will increase volumes and flexibility, but fully refrigerated LPG exports will be a gamechanger.

Iraqi LPG exports have soared this year with a step-up in capture and processing of formerly-flared gas, whilst refining runs are also up. The exact scale of the gains is being somewhat obscured by the presence of disguised Iranian supplies among ‘Iraqi’ export volumes – tankers often spoof their location to imitate loading from Iraq – but officials confirm that legitimate Iraqi volumes are also on the rise.

The key player in Iraq’s LPG sector is the Basrah Gas Company (BGC) joint venture of state firm South Gas Co (51%), Shell (44%) and Japan’s Mitsubishi (5%). BGC was formed in 2013 and helped Iraq become a net LPG exporter in 2016. The firm now expects to divert more of its LPG output to exports as volumes from other oil ministry gas processing plants and refineries step up supplies to the subsidized local market. (CONTINUED - 1619 WORDS)