Iraq is considering downsizing the mega ‘Nebras’ petrochemical project after the withdrawal of Shell and building smaller plants in various areas, the OPEC producer’s Industry and Minerals Minister has said.

Khalid Al-Najm said Shell’s decision to pull out of Nebras project in the Southern Basra city was prompted by its “new investment policy”, which includes a switch from investment in petrochemicals to gas.

But he told the official Iraqi News Agency in weekend comments that Shell is remaining in Iraq as it controls 45 percent in Basra Gas Company.

He revealed that there are some options for the project following Shell’s move and that the Ministry would announce them shortly.

“There is an idea to downsize Nebras project and build smaller petrochemical plants in various areas of Iraq…this will give us more flexibility and less technical requirements and challenges,” the Minister said.

The $11 billion Nebras was slated to have a capacity of 1.8 million tonnes per year.

Read more: Iraq to revise Nebras mega petrochemical project after Shell’s withdrawal

Shell’s Nebras exit will not affect commitment to Iraq – report

Why did Shell pull out of Iraq's mega petrochemical project?

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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