Basra Gas Co Processing 400 mcfd of Gas

Iraq's Basra Gas Company (BGC), a joint venture between South Gas Co., Royal Dutch Shell and Japan's Mitsubishi, is processing around 400 million cubic feet per day (mcfd) of gas, head of South Gas Co. (SGC) said on Wednesday, Reuters reported.

The company, a $17-billion project to gather more than 700 mcfd of gas flared off at Iraq's huge southern oilfields to process for domestic use and potential export, is on track to treat 2 billion cubic feet per day by 2017, the SGC head added further.

"Iraq should stop importing LPG in second half of 2014. We are producing now around 2,000 tonnes of LPG and we expect to reach production of 3,000 tonnes in second half of 2014," SGC general director, Ali Khudhier, told Reuters.

Providing Iraq's own modest gas needs are met first, the deal also gives BGC the right to build a liquefied natural gas (LNG) export terminal fed with at least 600 mcfd of gas in a few years time, Reuters said.