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Algeria’s Sonatrach to work in Iraq's natural gas industry

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LNG Industry,

Reuters are reporting that Algeria’s Sonatrach has agreed to take part in projects to develop Iraq’s natural gas industry.

Algerian Energy Minister Mustapha Guitouni and Iraqi Oil Minister Jabar al-Luaibi signed a preliminary agreement in Baghdad to form joint ventures between Sonatrach and Iraqi natural gas companies.

Iraq flares some of the gas extracted with crude oil at its fields because it lacks facilities to process it into fuel for local consumption or export.

Algeria is a major supplier of gas to Europe, exporting it by pipeline to the continent and shipping it on tankers as LNG.

“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 fertilisers industries,” Luaibi said in the ministry statement.

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