Technip’s Abu Dhabi unit has been awarded a contract for Basra Gas, part of a $17 billion project to capture gas from Iraq’s southern oilfields. Basra Gas has been described as the world’s biggest flare reduction project by Shell and the largest gas project in the country’s history.
Technip’s front-end engineering design contract will cover the basic engineering design package of the natural gas liquids process units, utilities and the submission of an engineering procurement and construction package for Ar Ratawi Natural Gas Liquids production facility at North Rumaila. The French oilfield services provider did not disclose the value of the contract.
“The project is the first of the new greenfield associated gas processing facilities that will significantly minimise gas flaring in Iraq and make energy resources available for power and domestic use,” a statement from Technip announced.
The plant began operations in April last year with an initial capacity to produce 400 million cubic feet a day, but once completed in 2017, the project will process 2 billion cubic feet a day. It captures associated gas, or natural gas found in oil deposits, from three oilfields in the south of Iraq – Rumaila, West Qurna 1 and Zubair.
Iraq’s government has a 51 per cent shareholding in Basra Gas, while Shell holds 44 per cent and Mitsubishi the remaining portion. Iraq signed the 25-year agreement with the two companies in November 2011.
