Iraq's South Gas Company's Output to See Significant Rise by 2013

Iraq’s South Gas Company is expected to produce over 2 billion cubic feet of gas by 2013.

The company is in the process of rapid expansion and large projects are under construction which will lead to speedy rise in company’s output.

 South Gas Company along with Basrah Gas Company is the two state owned firms operating in the hydrocarbon rich region of Basra.

The region holds up to 70 percent of the country’s oil reserves – the world’s third largest after Saudi Arabia and Iran.

Iraq has vast natural gas reserves and is trying to harness them in order to fuel its power stations and export the surplus.

The country has signed multi-billion dollar deals with Royal Dutch Shell and Japan’s Mitsubishi Corp. to capture the large volumes of natural gas its oil field flare off from some of Basra’s major oil fields like Rumaila, Zubai and West Qurna.

It is estimated that these three fields together flare off more than 874 million cubic feet a day.

Iraq’s proven natural gas reserves are estimated at 110 trillion cubic feet but oil ministry officials say there are another 150 trillion in probable reserves.