View Full Version : Gas Condensate Exports – a New Beginning for Hydrocarbon Industry?

Investors Iraq News
04-03-2016, 09:49 AM
By Rami Khrais for Al-Monitor (http://www.al-monitor.com/pulse/home.html). Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News (http://www.iraq-businessnews.com/).

Do gas condensate exports represent new beginning for Iraq’s hydrocarbon industry? Iraq exported its first shipment of gas condensate on March 20, from the port at Khor al-Zubair to Fujairah in the United Arab Emirates (UAE). Hamed Zubai, undersecretary at the Iraqi Ministry of Oil, reported that the Iraqi Oil Marketing Co. had arranged for the 10,000-cubic-meter consignment, and the Basrah Gas Co. had successfully exported the shipment.
“Due to surplus exceeding local consumption, gas condensate exports will continue.*In addition, the ministry seeks to export other types of associated gas-processing products,” Zubai said during a March 20 news conference. He*did not*mention potential export destinations.
“Exporting condensate opens the door for the state to secure added financial returns, driven by the fact that the global price per ton is around $350.”*What does this development mean, and does it represent a new beginning for the gas industry in Iraq?
Whereas natural gas refers to*gaseous hydrocarbons that accumulate*in porous sedimentary rocks and consist*mainly of methane, gas condensate (http://www.gazprominfo.com/articles/condenced-gas/) refers to a natural gas liquid recovered from gas wells that*consists mainly of pentane. Iraq is*one of the world’s richest countries when it comes to natural gas.
Citing*the*Oil & Gas Journal,*the US Energy Information Agency (EIA) reported that*as of January 2015, Iraq had proven gas reserves (http://www.eia.gov/beta/international/analysis.cfm?iso=IRQ) of about 112 trillion cubic feet, ranking it*12th globally in total volume of reserves.*The*EIA estimates*that about three-quarters of Iraq’s natural gas resources are of the associated type, meaning that they are located deep underground and mixed with oil. In contrast,*neighboring*Iran (http://www.al-monitor.com/pulse/originals/2016/02/iran-new-oil-contract-ipc-petroleum.html)*and Qatar have nonassociated gas, which is not mixed with petroleum.

Source: Iraq-BusinessNews.com. (http://www.iraq-businessnews.com/2016/04/03/gas-condensate-exports-a-new-beginning-for-hydrocarbon-industry/)

Post your commentary below.