A team from state-run Indian Oil Corporation and Engineers India Ltd will soon visit Iraq and explore the possibility of setting up a liquefied natural gas (LNG) terminal and transporting of the gas to India.
Iraq does not possess the technology to capture gas from its hydrocarbon blocks, which are burnt and released into the environment.
Analysts said with a new nexus developing amongChina, Iran and Saudi Arabia, Delhi are reviewing its energy diplomacy in the region — building closer ties with Iraq is part of the exercise.
India is looking at an LNG terminal option to diversify supplies and strengthen its energy security. The transported gas will be converted back to LNG for city gas distribution as well as for use by the power, fertiliser and steel sectors.
Iraq is one of the biggest gas-flaring countries as it lacks facilities to capture and process the gas to convert it into fuels or export it as LNG. As per estimates by global agencies, Iraq flares around 50 million standard cubic metres per day (mscmd) of natural gas. In 2022-23, India’s LNG imports stood at 19.9 million tonnes, which is equivalent to 71.6 mscmd of natural gas.
The Centre is also looking at resuming operations at ONGC Videsh Ltd’s exploration block in Iraq, which has been under force majeure since 2003.
‘‘Block 20’’, earlier known as Block 8, is a large on-land exploration block in the western desert of Iraq, spread over 10,500 sq km.
OVL had acquired a 100 per cent stake in the block by signing the exploration and development contract in November 2000, However, force majeure was declared in 2003 amid security concerns.
