IEI Assessment Report of Basra Gas Company (Arabic) [Report]

2771

As per the announced data on this agreement, the governmental company will purchase processed dry gas from the joint project within Iraq at a price linked to international prices, and sell it within Iraq at a subsidised price. If the export aspect of this agreement expands, as is expected, at the expense of the volume allocated for local consumption, Iraq will have to resort to importing at a higher price. As to LPG, the summary does not include the method of purchase and sale within Iraq. All this will drastically change the pricing mechanism of Iraqi gas for local industries. The change should be very carefully and cautiously taken into consideration. Although the Ministry of Oil has not revealed the detailed economics of the project, the summary regarding the project however shows that the foreign partner will have more financial benefits, as is explained in the following points.

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