20 Mar 2016
Basrah Gas Company (BGC) and the Iraqi Government have celebrated the loading of the first excess condensate* export, heralding the start of a much needed, new revenue stream for Iraq.
The first export comprises approximately 10,000m3 of excess condensate loaded from BGC’s marine terminal in Um Qasr. Condensate destined for domestic use is blended with imported gasoline to improve its quality, although not all the condensate is used in this mixing process.
His Excellency Dr. Hamid, Deputy Minister of Oil, stated on the event - 'I am delighted to witness this first condensate cargo leaving BGC's marine terminal, as it opens up a new revenue stream for the country at a time of real need’.
The revenue generated by the international sale of this excess condensate increases the shareholder return of the state-owned South Gas Company, through its 51% participating interest in the Basrah Gas Company.
Marking the milestone alongside BGC and its shareholders were honorable members of the Ministry of Oil, representatives from the Basrah Provincial Council, Governor Council, Umm Qasr and Khor Al Zubair local authorities, Port Authorities, River Transport Authorities, the Iraq Navy General and Sea Transport Authorities.
Speaking about the milestone, BGC Managing Director, Mr Simon Daman Willems, said, “BGC is carrying out the largest gas flares reduction project in the world. As part of our program, we are rehabilitating condensate systems and we now have the capacity to commence exports of excess condensate from our facilities, which otherwise are not fully utilized domestically. This is a very significant milestone for Iraq and BGC.”
Through the vision of the Iraqi Government, BGC was created in 2013. BGC is a unique public/private mid-stream joint venture. South Gas Company is the majority shareholder with 51%, Shell 44% and Mitsubishi 5%. The company has over 5,500 employees, 5100 of which are Iraqi’s, many of whom have years of experience working on BGC’s assets.
*Condensate is a mixture consisting of C5 + liquid hydrocarbons which can be further processed and sold as gasoline blend or chemical feedstock. Condensate is typically produced as part of the gas refining process.