LPG & Condensate

In 2016 BGC played a key role in creating a new revenue stream for Iraq’s economy by turning the country from a net importer to a net exporter of LPG. BGC started re-habilitation and upgrade works in Umm Qasr storage and marine terminal, to allow excess gas condensate to be exported.

BGC works closely with the State Organization for Marketing of Oil (SOMO) to manage levels of production and market constraints, whilst building a network and reputation in the LPG and Condensate export market.

In 2016 BGC played a key role in creating a new revenue stream for Iraq’s economy by turning the country from a net importer to a net exporter of LPG. BGC started re-habilitation and upgrade works in Umm Qasr storage and marine terminal, to allow excess gas condensate to be exported.
BGC works closely with the State Organisation for Marketing of Oil (SOMO) to manage levels of production and market constraints, whilst building a network and reputation in the LPG and Condensate export market.

In June 2022, BGC exported the first semi-refrigerated LPG shipment from the BGC Umm Qasr jetty, and successfully completed three semi-refrigerated shipment in total so far. This provides access to three times the number of vessels available globally for shipping LPG and doubles our loaded parcel size in a single operation, allowing us to access wider markets and destination terminals that only accept refrigerated products. In 2023, BGC managed two additional semi-refrigerated LPG.

The LPG surplus is being exported to foreign regional markets, whereby the exports business has been doubling its value over the years, whilst BGC continues re-habilitation and upgrading works in Umm Qasr storage and marine terminal, to allow excess gas condensate to be exported. BGC is looking to upscale exports business to firmly entrench Iraq’s position as a reliable LPG and condensate exporter in the region and globally.

One of BGC’s growth projects is to move from high pressure (HP) LPG to Refrigerated LPG to enable the Company carry larger volumes of LPG to further markets in the future.

Umm Qasr (UQ) Port

The Umm Qasr Storage Terminal (UQ ST) and Marine Terminal (UQ MT) are located to the south of Basrah city, which were both built in the 1980s.

The original intention was to store the LPG and condensate at the ST before being exported from the MT to generate revenue. The ST is located almost 7.5km inland and is connected by pipelines to the Khor Al Zubair gas processing plant (KAZ NGL).

Other pipelines connect the ST and MT on the coast. The UQ ST consists of tanks to receive propane, butane, and condensate, as well as refrigeration units to cool the products and refrigerated storage tanks. The UQ MT has two main jetties where tankers dock, and a smaller service jetty for tugs and other small vessels. BGC continuously carry out rehabilitation programs on the jetties to enhance and increase LPG volumes of for export and for other import services.

These products are sent through pipeline to the storage terminal whereby its blended with condensate and the LPG received from the Khor Al Zubair gas processing plant. The LPG is sent by pipeline for onwards distribution via the Iraqi LPG pipeline network to various bottling plants and road tanker filling stations.