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Iraq’s Ministry of Industry and Minerals has signed a heads of agreement (HOA) with Shell for the proposed Nebras polyolefins project. This will utilize ethane feedstock separated out from flared natural gas recovered from southern oil fields by the Basra Gas Company (BGC) JV of state firm South Gas, Shell and Japan’s Mitsubishi.
Iraq currently flares around 70% of gross 1.9bn cfd gas output; 80% of this is produced in the south.
A Shell official tells MEES: “Shell has been working with the Iraqi Ministries of Industry and Minerals and jointly with the Ministries of Oil and Transport to develop a joint investment model for a worldscale petrochemical cracker and derivative complex in the south of Iraq. Shell supports Iraq’s vision to develop a world-class petrochemical industry.”
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