Algeria’s Sonatrach Agrees to Work in Iraq’s Natural Gas Industry: Iraqi Oil Ministry
Algerian state energy company Sonatrach will participate in projects to develop natural gas industry in Iraq following an agreement with Baghdad, Iraqi Oil Ministry said.
Iraqi Ministry of Oil said in a statement on Monday (January 8) that Minister Jabar al-Luaibi and Algerian Energy Minister Mustapha Guitouni signed a preliminary agreement in Baghdad to form joint ventures between Sonatrach and Iraqi natural gas companies.
“Sonatrach will work with Iraqi gas producing companies to invest in processing gas produced from oilfields to supply electrical power plants and the petrochemical and fertilizers industries,” Iraq’s oil minister said, Reuters reported.
As Iraq lacks facilities to process its gas into fuel for local consumption or export, it flares some of the gas extracted with the crude oil at its fields.
Algeria is a major supplier of gas to Europe, exporting it by pipeline to the continent and shipping it on tankers as liquefied natural gas (LNG).
Iraq is a founding member of the OPEC cartel and its second largest producer after Saudi Arabia, with output of 4.4 million barrels per day (bpd).
Algeria has estimated output of 1 million bpd.