Basrah Gas Co (IFC-39146)

Countries
  • Iraq
Geographic location where the impacts of the investment may be experienced.
Specific Location
Basrah province
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 7, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
BASRAH GAS COMPANY
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 400.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,000.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Media Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 24, 2024

Disclosed by Bank Oct 4, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

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.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Basrah Gas Company Client Energy
- - - - Mitsubishi Corporation Investor -
- - - - Royal Dutch Shell plc Investor -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Basrah Gas Company
Yogesh Yadav
BGC Head of Treasury

communications@basrahgas.com
P.O. Box 2705 Al Ashar Post, Khor Al Zubair, Basrah, Republic of Iraq
http://www.basrahgas.com/ 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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