This week has seen some significant developments in flaring, which we highlight below.
- The IFC has arranged for a $360 million loan (from the IFC itself and 8 commercial banks Bank of China, Citi, Deutsche Bank AG, Industrial Commercial Bank of China, Natixis, Sumitomo Mitsui Banking Corporation, Société Générale and Standard Chartered Bank) over 5 years to the Basrah Gas company to treat and process flared gas from the Rumaila, West Qurna and Zubair fields in Iraq. In aggregate, these fields flare over 600 million scf/day, according to FlareIntel (see image below). The gas will be used to create much-needed power for the people of Iraq. This is particularly critical as reductions in imports of gas/power from Iran in recent days had led to increased blackouts in Iraq.
- Flaring at Algeria’s Skikda plant is now back under control after a compressor failure on June 11 that led to a major uptick in gas flaring. See chart with data from FlareIntel Pro.
- African Energy published a paper on flaring in Algeria, citing FlareIntel data. The paper, titled “Gas flaring threatens Algeria’s energy exports to Europe” (click for article) outlines how the EU’s carbon border adjustment mechanism may negatively impact countries that send high flaring-intensity gas into Europe. With the rise of consumer awareness, we expect this to be a trend to watch.