Iraq’s natural gas industry
or as cylinders of LPG for cooking and heating
requires the cooperation of a number of different parties
working together to maintain and develop Iraq’s infrastructure for the greater good.
Capturing associated gas is the responsibility of the joint ventures that operate the three giant oilfields in southern Iraq – Rumaila, Zubair and West Qurna 1. It is their task to build and operate the equipment to capture the natural gas at the well-head as it is produced with oil. They then supply this gas unprocessed to BGC, at their sites.
BGC is responsible for transporting and processing the natural gas.
We then deliver it to South Gas Company, which in turn makes the dry gas and liquid products available to the local market.
In total, BGC’s infrastructure to do this stretches across an area of over 3,500 square kilometres, 17 times the area of Baghdad city.
BGC inherited a network of around 1,800 kilometres of pipelines, with nine compressor stations to push the gas through them. This network transports the natural gas from the delivery points from the oil joint ventures to our two major natural gas processing plants. As well as rehabilitating our existing infrastructure, we are expanding our network to include new pipelines and double the number of compressor stations.
At our two processing plants, we separate the natural gas.
We deliver dry gas to South Gas Company, which provides it to power plants operated by the Ministry of Electricity. It is used to generate electricity for homes and businesses across southern Iraq.
Valuable liquids are removed from the natural gas and made into LPG, for bottling in cylinders for distribution around Iraq. BGC is Iraq’s main producer of LPG. The Government’s intention is that one day, when local demand is met, the surplus can be exported. We are upgrading a marine and storage terminal for this purpose.
The Government plays a critical regulatory role in ensuring all the companies fulfil their commitments and that the necessary long-term planning takes place to ensure efficiency and sustainability along the full supply chain from the well-head to the light switch.