According to bank documents, the project entails the design and installation of a new gas processing plant, the Basrah Natural Gas Liquids facility, part of a broader expansion plan to increase BGC’s raw gas processing capacity from 1 billion standard cubic feet per day (“bscfd”) currently to 1.4 bscfd by 2024.
The Basrah Natural Gas Liquids project cost is estimated at US$1 billion over the next 5 years. IFC’s proposed investment consists of a US$400 million Green Loan which will include an A loan of up to US$200 million for IFC’s own account, a loan under IFC’s Managed Co-Lending Portfolio Program (“MCPP”) and up to US$200 million in mobilization from commercial banks. The remainder will be funded by operating cash flows.
Basrah Gas Company (BGC) is an Iraqi midstream natural gas company created to gather, treat and process associated gas flared at oil fields in southern Iraq. BGC commenced operations in May 2013 and operates compressor stations, various gas processing plants, a pipeline network and a storage and marine terminal for export. It produces dry gas for sale into the Iraqi gas grid, and liquefied petroleum gas (LPG) and condensate for local consumption and export.
BGC is a public/private joint venture between the Iraqi Ministry of Oil through its subsidiary South Gas Company (51%), Royal Dutch Shell plc (“Shell”) (44%) and Mitsubishi Corporation (“Mitsubishi”) (5%).
South Gas Company is wholly-owned by the Iraqi government. It previously owned and operated the natural gas infrastructure in southern Iraq, which was transferred to BGC at its inception.
Shell is an international, vertically integrated energy company with expertise in oil, gas and low carbon energy. Shell is the third largest company in the world as measured by its 2018 revenues and the largest listed on the London Stock Exchange (LON: RDSA).
Mitsubishi is a global, integrated company with activities in 90 countries across a wide range of industries, from natural gas and mineral resources to automotive, food, power solutions and urban development. Mitsubishi has a primary listing on the Tokyo Stock Exchange (TYO: 8058).
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Basrah Gas Company
BGC Head of Treasury
P.O. Box 2705 Al Ashar Post, Khor Al Zubair, Basrah, Republic of Iraq
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