ABB nets $63m power plant deal in South Iraq

ABB was selected by Shell and Mitsubishi, joint project leaders on the Basra gas capture project.

ABB has scooped a $63 million contract to build two power plants at the Basra gas capture project in South Iraq.

The Swiss engineering group was awarded the contract by Shell and minority partner Mitsubishi, which together are working to capture the 700 million cubic feet per day flow of associated gas from southern Iraqi fields for power generation and LNG exports.

“This project will ensure a stable and reliable power supply to support existing and future infrastructure,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “ABB’s capability to fully execute all aspects of this complex project will help provide the Basrah Gas Company with the electricity it needs to successfully power its complete production process.”

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Flaring gas has cost Iraq billions in lost revenue and had a negative impact on the local environment.

According to a Reuters report, ABB will build two 25 megawatt power plants at Khor Zubair.

Shell and Mitsubishi were awarded the contract to capture Basra's flared gas in November last year after years of delay.