Basrah Gas Company (BGC) has obtained endorsement from its shareholders to gather and process an additional 80 mmscf/d of the flared gas.
BGC's shareholders (South Gas Company 51%, Shell 44% and Mitsubishi 5%) have signed the Final Development Decision (FDD), at the Higher Management Committee meeting, to proceed with the investment of $87.5 million for the Hammar Mishref project.
The $87.5 million mega-project includes the installation of five new compressors in Hammar Mishref compressor station, to gather an additional 80 mmscf/d of the associated gas from Zubair oilfield - that is otherwise flared.
Hammar Mishref is one of 24 compressor stations operated by BGC and one of the first to be upgraded since BGC's commencement of operations in 2013. Hammar Mishrif compressor station originally consisted of four compressors with a capacity of 35 mmscf/d. Recently, two additional compressors were added, with capacity of 32 mmscf/d with a plan to start up in the first quarter of 2023.
Once the new project comes on stream, Hammar Mishref compressor station will have a total of 11 compressors uplifting the compression capacity from 35 mmscf/d to a total of 147 mmscf/d. The five new compressors will not only increase the capacity to capture associated gas and further reduce flaring from Zubair oilfield but will also provide stability and reliability of dry gas for power generation.
Mr. Andrew Wiper, BGC Managing Director commented: "This is a remarkable investment, and we are very pleased for the endorsement of the Hammar Mishref project by the shareholders. Our aim is to support the Government of Iraq's vision to increase production capacity whilst reducing gas flaring in the south of Iraq - turning the associated flared gas into cleaner energy powering people's lives in Iraq."
BGC is a lean and robust organization led and operated by skilled Iraqis who are eager to help their country and their communities. BGC is playing a pivotal role in minimizing gas flaring from licensing round 1 oilfields, our aspiration is to end flaring in the long run from the three fields. With every growth project we deliver, we are a step closer towards achieving our goal.
