US-based energy technology company Baker Hughes announced last week that it signed a memorandum of understanding (MoU) with Iraq-based Halfaya Gas Company (HGC) to establish a collaboration framework for a gas flaring reduction project at the Bin Umar gas processing plant in southeastern Iraq.

The MOU was signed in the US capital in the presence of the Prime Minister of Iraq Mohammed Shia' Al Sudani.

Baker Hughes said in a press statement that it will support the project with the supply of key turbomachinery and process equipment, a pre-Front End Engineering and Design (FEED) study of modular gas processing skids, and work with the project’s selected FEED contractor in developing the plant design.

HGC is a special purpose company, owned by Raban Al Safina for Energy Projects (RASEP), that was established to deliver a new gas processing plant to serve the onshore Bin Umar field.

In late 2023, the Iraq Ministry of Oil (MOO) awarded a build-own-operate-transfer (BOOT) contract to HGC. The field produces 40,000 barrels per day and over 150 million of standard cubic feet per day of associated sour gas, currently flared or used (untreated) as a fuel gas for a nearby power plant.

HGC’s Bin Umar gas plant will convert waste gas into treated dry gas, Liquefied Petroleum Gas (LPG) and condensate for domestic use and export, supporting Iraq’s overall prioritisation of gas projects to meet the country’s power needs and to curb flaring.

(Writing by SA Kader; Editing by Anoop Menon)


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