Royal Dutch Shell is reportedly studying the use of floating LNG terminals to ship gas produced in Iraq and Egypt, as part of a wider network of LNG services around the world.

According to a report by Reuters news agency, a senior Shell executive indicated recently that the company was perusing such an innovative concept.

The terminals would each have capacity to export two million tonnes per year (tpy) of LNG, John Mills, Shell Executive Vice President for gas and power in North Africa, the Middle East and South Asia, told reporters at an energy conference.

Shell signed an initial multi-billion dollar agreement last month with Iraq, to capture gas that otherwise would be burnt-off during the production of oil. The gas will supply power plants and some would be exported as LNG through Basra, also Iraq’s main oil export terminal. The terminal would be Iraq’s first LNG export facility.

Shell is also thought to be considering the use of a floating LNG terminal for gas produced from a gas field off Western Australia. That terminal could be larger, with capacity of up to 5 million tpy, Mills suggested.