Basrah Gas Co

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 Basrah Gas Company (“BGC” or the “company”), is an Iraqi midstream natural gas company that commenced its operations in May 2013 to gather, treat and process associated gas that would otherwise be flared at the license round 1 oil fields of West Qurna 1, Zubair and Rumaila in southern Iraq. BGC is a 25-year joint venture with state run South Gas Company holding a 51% stake, Shell 44% and Mitsubishi 5%. BGC is one of the largest flare reduction projects in the world and has turned Iraq from a net importer to a net exporter of LPG. The proposed project will enable BGC to prevent over 9.5 million metric tonnes of CO2 equivalents per year from entering the atmosphere by reducing upstream gas flaring (compared to 2020 levels).IFC is seeking to finance the development of the Basrah Natural Gas Liquids (“BNGL” or the “project”) plant, consisting of two natural gas liquids trains, each of 200 million standard cubic feet per day capacity. The capture and processing of associated gas from the upstream oil fields is currently limited by the capacity of BGC’s existing natural-gas-liquids (“broadcut” or “NGL”) plants and export infrastructure. Construction of the BNGL facility will expand gas processing by introducing additional NGL separation gas treatment. BNGL will treat the associated gas to meet the domestic gas specification and supply gas to the regional gas grid. NGL, consisting of liquid petroleum gas and condensate, will be separated from the gas at the BNGL facility and sent to the liquid petroleum gas separation processes at BGC’s Khor Al Zubair (“KAZ”) facility. The BNGL process will also remove hydrogen sulfide from the gas producing a biological sulfur product intended to be used for the domestic Iraqi market.The BNGL project scope comprises three main elements, namely i) the BNGL process trains, ii) works in the immediate vicinity of the process trains, including power and water supply, iii) four pipelines and their tie ins including a 13.7 km feed gas pipeline from BGC’s North Rumaila NGL plant, an 80 km broadcut export to the BGC KAZ facility, a 10.2 km dry gas pipeline to connect to the Iraqi gas grid, and a 17 km water supply pipeline from the Rumaila Operating Organization’s Al Nukhail Water Pumping Station. The North Rumaila NGL and KAZ facilities were constructed and became operational in the early 1980’s and are therefore not considered as “associated facilities” to the BNGL project.