Japan’s Mitsubishi joins Iraq-Shell gas project

GAS PROJECT: Japan's Mitsubishi confirms it is to take a 5 percent interest in Iraq Oil Ministry-Royal Dutch Shell gas project. (Getty Images)

Japan's Mitsubishi Corp. said on Tuesday it is to take a 5 percent interest in the proposed South Gas Utilization Project joint venture currently under development by Iraq’s Oil Ministry and Royal Dutch Shell, KUNA reported.

The project will process raw gas produced in Basra province and sell on the processed natural gas and associated products, such as condensate and liquefied petroleum gas (LPG) for use in the domestic and export markets, the Tokyo-based firm said in a statement.

"We are delighted to be the first Japanese company to participate in such large-scale energy project in Iraq and aim to contribute to the country through this project," Jun Nishizawa, Vice President of Mitsubishi said.

Mitsubishi did not reveal financial terms, but earlier media reports said Shell is expected to spend up to $4 billion over five years to produce gas in the Basra region.

In September 2008, the Iraqi government and Shell signed an agreement establishing a joint venture with the Iraqi South Gas Company, an affiliate of the Oil Ministry.

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