US energy technology company Baker Hughes has announced an agreement with Iraq-based Halfaya Gas Company (HGC) to strengthen their collaboration for an innovative flare gas recovery system at the Bin Umar [Nahr Bin Umar, Nahr Ben Umar] gas processing plant in southeastern Iraq. The project will significantly reduce upstream flaring and transform waste gas into valuable products.
The agreement builds on a previously announced memorandum of understanding to establish a collaboration for the Bin Umar development project and completion of a pre-Front End Engineering and Design (FEED) study. It marks an important step in Iraq's drive to eliminate routine flaring and support the country's energy transition and environmental priorities.
The project is expected to recover up to 300 million standard cubic feet per day (MMSCFD) of flared gas. This equates to approximately 32 billion kilowatt-hours of energy annually - comparable to the yearly electricity consumption of roughly 2 million average households in Iraq. The waste gas that would have otherwise been flared will be converted into treated dry gas, liquefied petroleum gas (LPG), and condensate for domestic use and export.
The companies have also agreed to collaborate on development of upstream oilfields in Iraq, also leveraging Baker Hughes' Oilfield Services & Equipment segment expertise. This includes exploring strategic opportunities to develop local maintenance and repair services, along with an industrial manufacturing collaboration.