Shell is in talks with Iraq to increase BGC capacity to 2 billion cubic feet per day
BGC currently plans to increase its gas capacity to 1.4 billion cubic feet per day from the current 1 billion cubic feet per day over the next two years.
The company is currently investing in associated gas from three southern oil fields: Rumaila, West Qurna 1 and Zubair.
BGC is a 25-year joint venture that includes the state-owned South Gas Company with a 51% stake, Shell with 44% and Mitsubishi Corp. with 5%.
"With the increase in oil production, the associated gas will increase, and this is where discussions with the government are taking place, to look at the government's intention and strategic vision for exploration and production suppliers," Al-Janabi said in a statement to S&P Global Platts and seen by Shafak News.
"For this reason, we have to reconcile expectations of upstream plans and investment from the Basra Gas Company," he added.
Iraq is working to increase its production as the OPEC + alliance continues to ease the historic cut of 9.7 million barrels per day. The 23-member alliance is reducing production by 400,000 barrels per day each month between August and December.
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