Iraq's oil minister says Saudi companies interested in gas, petrochemicals projects in country - S&P Global

kodikod.blogspot.com

Highlights

Interest discussed during virtual meeting with Saudi energy minister

Officials from Saudi Aramco, SABIC and ACWA Power attend the meeting

Iraq is seeking investments in gas projects to lower Iranian energy imports

Saudi companies are interested in gas, petrochemical and clean energy projects in Iraq as part of increased cooperation between OPEC's two biggest producers, the Iraqi oil minister said June 7, as Baghdad courts investments to wean itself off Iranian energy imports.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Ihsan Ismaael and his Saudi counterpart Prince Abdulaziz bin Salman discussed the interest of Saudi companies in these projects in a virtual meeting on June 7, the Iraqi oil ministry said in a statement.

Representatives from Saudi companies including officials from petrochemical giant Sabic, Saudi Aramco and water and electricity firm ACWA Power attended the meeting, while Iraqi participants included the electricity minister and the head of the National Investment Commission.

Saudi companies are particularly interested in various projects, including the development of the Akkaz and Ratawi gas fields and Nebras petrochemical project.

A Saudi oil minister spokesman was not immediately available to comment on the meeting.

Western interest

Ismaael has earlier said Western companies are interested in the Akkaz and Ratawi gas fields and Nebras petrochemical project.

The oil ministry is in talks with US companies and other investors to develop the Akkaz gas field near the border with Syria, Ismaael said May 3. The technical discussions have been slow, but the project envisages an investment of $3 billion to produce 300 MMcf/d, he added at the time.

Under an associated gas agreement announced March 29, Total will establish a central gas complex in Ratawi with the aim of collecting and refining associated gas produced from the Ratawi, West Qurna 2, Majnoun, Tuba and Lahis oil fields.

Iraq is seeking to spend, with certain energy partners, $15 billion to boost its gas production, Ismaael said May 3, as the country works on reducing reliance on Iranian energy imports.

Iraq is under increasing US pressure to lower its reliance on Iranian gas and electricity, which are needed to avert acute power outages, especially during the summer when temperatures can soar to 50 C. Since 2018, Iraq has been receiving US waivers to continue to import Iranian energy, which are subject to sanctions that were re-imposed by Washington that year.

Iraq also expects to wean itself off Iranian gas exports by 2024-25 as it speeds up projects to boost domestic gas production, Ismaael said April 22.

Associated gas

Federal Iraq relies mainly on gas produced with oil, which is subject to OPEC + quotas that restrict the ability to provide feedstock for power generation. Gas that is produced is also mostly burned, making Iraq the world's second-worst flaring country after Russia in 2020, according to the World Bank .

Iraq aims to speed up plans for an $8 billion petrochemical project with Shell, Ismaael said Aug. 31 last year, as the country seeks to implement a development first announced in 2012.

The oil and industry ministries, which together have a 51% stake in the project, have held meetings to accelerate the implementation of the Nebras project with Shell, which has a 49% interest, Ismaael said at the time. He added that the legal and contractual terms should be finalized by the end of 2020.

The project in the southern city of Basra will produce 1.8 million mt/year of polyethylene and will be supplied with sufficient ethane feedstock, the minister said.

Iraq signed a memorandum of understanding with Shell in 2012 to develop Nebras.

Adblock test (Why?)

"gas" - Google News
June 08, 2021 at 11:39AM
https://ift.tt/3cnT5wy

Iraq's oil minister says Saudi companies interested in gas, petrochemicals projects in country - S&P Global
"gas" - Google News
https://ift.tt/2LxAFvS
https://ift.tt/3fcD5NP

Bagikan Berita Ini