CPECC agrees to build natural gas liquids plant in Iraq

China Petroleum Engineering and Construction Corporation (CPECC) will build the natural gas liquids plant, west of Basra, sustaining Iraq as a foremost energy provider

China Petroleum Engineering and Construction Corporation (CPECC) and Basra Gas Company (BGC) have signed a contract to build a natural gas liquids (NGL) plant in Iraq.

"We are delighted to have been selected by BGC to be part of this strategically important gas project - winning this important contract represents a new recognition of our proven capacity in project execution in Iraq," said CPECC President Liu Haijun at a recent signing ceremony.

Basra Gas Company managing director Frits Klap revealed that, as the main contractor, CPECC would be responsible for all the construction, installation and the site works for the plant. Gas production capacity is set to increase by 40%. The project will reduce environmentally harmful gas flaring, and increase dry gas supply and NGL export capabilities.

The Basra NGL facility will be built in the Ar-Ratawi area in the west of Basra, and is scheduled to be completed by the end of 2020.

Iraq is once again established as a major global oil producer, and its crude oil production has nearly doubled over the past decade. Crude oil production averaged over 4.5 million barrels per day during 2018.

Iraq is the second-largest crude oil producer in the Organization of the Petroleum Exporting Countries (OPEC), after Saudi Arabia.

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