Iraq Resumes Condensate Shipments, Clears Oil Exports Through Hormuz
Key Facts
The tanker Dakous departed after loading its cargo, marking the resumption of shipments of a product the company had been unable to ship during the suspension. The move comes in a sector that collects associated gas from the Rumaila, West Qurna 1 and Zubair fields and processes it, according to the company’s description of its operations. Processing yields dry gas, LPG and condensate, linking the company’s activities to domestic energy supplies and exports of petroleum products. Available information did not include figures on the cargo’s volume or its financial impact.
The company says the dry gas it sends to the national grid is used to generate electricity for more than three million Iraqi homes. That role makes gas supplies part of the household electricity system, alongside the production of LPG and condensate from associated gas. Basrah Gas also says it currently supplies more than 80% of Iraq’s LPG needs and exports the surplus to neighboring countries. This share underscores the importance of processing operations to the domestic market, while the ability to sell the surplus depends on shipping capacity. These figures and descriptions appear on the company’s current website and do not provide a measure specific to the resumption of May shipments.
Against a backdrop of production pressure, the International Energy Agency said Iraq’s associated gas production had fallen by about 15.6 million cubic meters per day by May 2026, or 60% from prewar levels. The agency attributed the decline to lower oil production in the country, which reduces the associated gas available for processing. This development affects the feedstock the company’s facilities rely on to produce dry gas, LPG and condensate. It links oil field output with the flow of gas to the electricity grid and the availability of gas products in the domestic market. The agency’s figures do not specify the share of the decline attributable to Basrah Gas facilities.
On the shipping route, Reuters reported that five commercial vessels passed through the Strait of Hormuz on the Saturday before its report, while no crossings were recorded on Sunday, compared with 31 vessels over the previous weekend. The figures were based on vessel-tracking data from Kpler and show a sharp disparity in traffic between the two periods. The slow passage comes amid the suspension that preceded the resumption of condensate loading and exports by Basrah Gas. On November 10, an EL7 story covered Iraq’s discussions on routing its tankers through the strait and the proposal of alternative northern export routes. These moves indicate that options for transporting oil and products remained under discussion as shipping was disrupted.
Iraqi Foreign Minister Fuad Hussein said on November 8 that Baghdad had reached understandings with Washington to allow Iraqi oil exports through the Strait of Hormuz using a shipping corridor near Oman, Reuters reported. The statement identifies a proposed maritime route for oil exports, while the resumption of condensate shipments from Basrah Gas is a separate development in the company’s product exports. Available information shows that loading resumed after a suspension linked to the strait’s closure, but does not include details on the schedule for subsequent shipments or how long the resumption will last. The source also did not announce a figure for condensate export volumes or a date for a subsequent shipment. The outlook for future exports therefore remains tied to the reported understandings on transit and vessel movements through the strait.