Energy technology company Baker Hughes announced an agreement with Iraq-based Halfaya Gas Company to strengthen their collaboration on a flare gas recovery system at the Bin Umar gas processing plant in southeastern Iraq. The project aims to 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 prefront-end engineering and design study.
“Making traditional sources of energy more efficient with lower emissions is critical for sustainable energy development. The industry has a responsibility and opportunity to enable this today,” said Alessandro Bresciani, senior vice president for energy equipment, industrial and energy technology, at Baker Hughes.
The project is expected to recover up to 300 MMscf/D of flared gas. This equates to approximately 32 billion kW-hr of energy annually — comparable to the yearly electricity consumption of roughly 2 million average households in Iraq. The waste gas that otherwise would have been flared will be converted into treated dry gas, liquefied petroleum gas, and condensate for domestic use and export.
The companies also have agreed to collaborate on the development of upstream oil fields in Iraq, including the exploration of strategic opportunities to develop local maintenance and repair services and an industrial manufacturing collaboration.
“Our collaboration with Baker Hughes reaffirms our unwavering commitment to Iraq’s future by reducing emissions, enhancing energy security, and accelerating the development of a modern and sustainable energy infrastructure. Through strategic alliances with world-class partners, we are laying the foundations for long-term prosperity and resilience for our people,” said Hussein Saihood, the CEO of Raban Al Safina for Energy Projects (RASEP), which is part of RAS Group.
The Bin Umar project is being developed by Halfaya Gas Company, a special-purpose project company owned by RASEP, pursuant to a 15-year build/own/operate/transfer contract with South Gas Company, a subsidiary of the Iraqi Ministry of Oil.