Basrah Gas Development Agreement
Basrah Gas Development Agreement: A Game-Changer for Iraq`s Economy
The Basrah Gas Development Agreement (BGDA) is a landmark deal signed in 2013 between Iraq`s government, Shell, and Mitsubishi to capture and utilize natural gas that was previously flared in oil fields in southern Iraq. This agreement is a game-changer for Iraq`s economy as it not only promotes environmental sustainability but also creates job opportunities and boosts economic growth.
Before this agreement, Iraq was flaring around 70% of the natural gas produced in its oil fields. Flaring refers to burning off the excess gas that is not utilized or captured. This process is harmful to the environment as it releases carbon dioxide and other harmful gases into the atmosphere. Moreover, it is a waste of a valuable resource that could have been used for power generation or other industrial applications.
The BGDA aims to capture the natural gas that was previously flared and utilize it for domestic power generation and industrial applications. This not only reduces the environmental impact of flaring but also helps Iraq to become more self-sufficient in terms of energy production. Moreover, by utilizing natural gas instead of burning oil for power generation, Iraq can export more crude oil, which is its primary source of revenue.
The BGDA envisages the construction of a natural gas processing plant in Basrah that can process up to 2.5 billion cubic feet of gas per day. The processed gas will feed domestic power plants, industrial facilities, and also be exported to neighboring countries. The project is expected to create thousands of jobs and provide significant economic benefits to Iraq.
The BGDA is not only a significant step towards mitigating greenhouse gas emissions, but it is also a testament to Iraq`s commitment to sustainable development. By capturing and utilizing natural gas, Iraq is taking a proactive approach to address climate change and reduce its dependence on fossil fuels. This is a crucial step in achieving its goal of becoming a global leader in renewable energy and sustainable development.
In conclusion, the Basrah Gas Development Agreement between Iraq`s government, Shell, and Mitsubishi is a game-changer for Iraq`s economy and its sustainable development goals. By capturing and utilizing natural gas, Iraq is promoting environmental sustainability, creating jobs, and boosting economic growth. This agreement demonstrates Iraq`s commitment to sustainable development and its vision of becoming a global leader in renewable energy.