India Eyes LNG Imports from Iraq

India is interested in importing liquefied natural gas from Iraq, according to a statement from India’s Ministry of Petroleum and Natural Gas.

The country’s Minister of Petroleum and Natural Gas, Dr. M. Veerappa Moily, is in Baghdad to attend a two-day meeting of the 17th India-Iraq Joint Commission.

“Indian companies have the expertise to participate in many projects which were coming up in Iraq, especially in areas such as refineries, petrochemicals, fertilizers, etc. India will also be interested in gas-based projects and importing LNG,” the statement said.

Basrah Gas Company, which will be the largest gas project in Iraq’s history and the world’s largest flares reduction project, has in May started operations, and in the future, the project also includes the option to build an LNG plant for potential export once domestic energy needs are met.

The company is a 25-year incorporated Joint Venture between Iraq’s South Gas Company holding 51% of its shares, Shell 44% and Mitsubishi Corporation 5%.

Iraq has estimated natural gas reserves totaling 112.6 trillion cubic feet, the 10th largest in the world.

However, due to decades of wars and sanctions that led to the deterioration of the gas infrastructure, preliminary estimates indicate that Iraq’s losses from gas flaring could amount to billions of dollars annually.

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LNG World News Staff, July 8, 2013; Image: Petronet