Basrah Gas Company
Basrah Gas Company (BGC) is an Iraqi joint venture established in 2013, to utilize Basrah’s natural gas resources and convert it into much needed energy essential for the people of Iraq. BGC aims at fulfilling Iraq’s energy strategy by investing further in its natural gas and achieving energy independence -supporting the country’s economy. BGC is also one of the largest gas flaring reduction projects in the world.
BGC is a 25-year joint venture between Iraq’s South Gas Company holding 51%, Shell 44% and Mitsubishi Corporation 5%. BGC is the main gas processing hub in Iraq and plays a vital role in fulfilling Iraq’s energy strategy and economic diversification by gathering, treating, and processing associated gas from three oilfields: Rumaila, West Qurna 1 and Zubair (Licensing Round-1 oilfields), turning natural gas into cleaner energy (otherwise flared).
BGC produces three main products through its operations:
- Dry gas for power generation
- Liquified Petroleum Gas (LPG) used for domestic cooking and heating
- Condensate used for heavy vehicles and factories
BGC produces dry gas sufficient to generating 3.5 GW of electricity, powering over three million households in Iraq. In 2016, BGC turned Iraq from a net LPG importer to a net exporter by meeting the local demand and exporting the surplus abroad – creating an additional revenue stream to the country. Today BGC provides more than 80% of Iraq’s LPG demand.
