Mitsubishi, Shell, SGC, form Iraq natural gas joint venture

Mitsubishi, Shell and South Gas (SGC) have signed a joint venture agreement with Iraq’s Ministry of Oil to capture associated gas in the southern region of the country.

SGC, Shell and Mitsubishi will hold 51%, 44% and 5% stakes, respectively, in the new Basrah Gas Company (BGC) joint venture.

BGC will collect raw gas from the Rumaila, Zubair and West Qurna 1 fields in southern Iraq, and process it into products such as natural gas, condensate and liquefied petroleum gas for sale initially in Iraq.

The firm will also develop an LNG facility to export natural gas, mainly to Japan.

Operations will start in 2013, with a maximum production of two billion standard cubit feet of natural gas per day.

To increase the value of the project, Mitsubishi will use its knowledge of SGC facilities, along with technical and commercial capabilities.