UK/Dutch oil major Shell Group has invited international engineering, procurement and construction (EPC) firms to express interest in the development of a two new gas projects in the south of Iraq.

The first is for an associated gas treatment plant at the Majnoon oil field, while the second is for a natural gas liquids (NGL) plant at the Shell-led Basra Gas Company, according to a source close to the projects.

Shell is developing the Majnoon oil field, in consortium with Malaysia’s Petronas and state-owned Missan Oil Company. The first phase of development at the field involved the construction of new facilities and modifying its existing infrastructure to produce oil. This was known as the first commercial production (FCP) project.

The new scheme, which will be developed over two phases, will manage associated gas production from the FCP facilities. The first covers the design and construction of sweet gas compression and dehydration facilities of up to 155 million cubic feet a day (cf/d).

The second will add sour gas treatment facilities for 160 million cf/d. The gas produced from both phases will be sent to the Khor al-Zubair gas processing plant. Phase one is expected to require 5MW of power, and 21MW for phase two.

Shell is also planning a NGL plant to be developed alongside its South Gas project, which aims to capture and utilise associated gas at several southern oil fields that is normally be flared. It is currently conducting a market survey for potential EPC contractors. Tenders could be launched for the scheme by the end of the year.

The proposed 500 million cf/d plant will produce gas and liquid petroleum gas (LPG). The project will cover the evaluation of existing facilities to process, store, and export the increased LPG production from the new plant. It will also cover any utilities, power generation, infrastructure required.