GAS exports from Iraq should be directed to neighbouring Gulf states rather than Europe, says Shell, a major stakeholder in the country’s Basra Gas project. While this is good news for gas-hungry countries in the region, where demand is outstripping supply, it is a further blow to the EU-backed Nabucco pipeline project, which had hoped to secure Iraqi gas for Europe.
A huge market on the doorstep
"There’s a huge market on the doorstep of Iraq in the Gulf states. If these countries could work together, that’s the shortest route to market – and probably the most interesting market," said Shell’s Iraq vice-president, Hans Nijkamp. "All these countries are burning oil, or rely on liquefied natural gas (LNG) imports. It would make much more sense to secure gas from a more local supplier," he added.
The Iraqi government approved the $17 billion Basra Gas contract with...