Baker Hughes, a GE company (BHGE) said it has signed an agreement with the Iraqi Ministry of Oil to develop flare gas at the Nassiriya and Al Gharraf oilfields.
The project will take place in two stages, using modular gas processing technology developed in United States, BHGE said in a statement.
In the first stage, the advanced modular gas processing solution will be deployed to dehydrate and compress flare gas to generate over 100 million standard cubic feet per day (MMSCFD) of gas.
The Nassiriya plant will be then expanded to be a complete natural gas liquid (NGL) facility to recover 200 MMSCFD of dry gas, liquefied petroleum gas (LPG) and condensate.
Jabbar Al-Luaibi, the Iraq Minister of Oil, said that the ministry is moving ahead to implement its strategic plans to secure financial revenue to the treasury of the Iraqi state and to develop the oil industry.
BHGE said the project will create direct and indirect jobs for Iraqis and help grow the local supply chain requirements that supports Iraqi small and medium enterprises.
The modular solution will also support power plants with dry gas for efficient power generation, thus helping meet the growing demand for electricity using clean fuel. The project will also contribute to curtailing the amount of gas flared in the fields of Nassiriya and Gharraf that otherwise goes waste.
The hundreds of thousands of tons per year of LPG and condensates produced will help to meet the domestic demand for cooking gas. The surplus LPG and condensate will be exported, generating high revenue to the Iraqi government. Contributing to the social and economic development of Nassiriya, the project is aligned with the vision of the Ministry of Oil and the government.
Rami Qasem, President, MENAT and India, Baker Hughes, a GE Company, said: “The Iraqi Ministry of Oil has outlined a clear vision and strategy to maximize the utilization of natural resources, especially gas. As a full-stream company that combines physical and digital strengths to increase reliability and uptime across the entire spectrum of oil and gas development, we bring advanced solutions that can support in transforming the industry and contribute to all-round development through our in-country investments in Iraq. We are committed to supporting the Ministry of Oil in its strategic goals, and in deploying advanced flare gas solutions and to build the country’s oil and gas infrastructure. From industrial to economic and environmental benefits our solutions will create long-term value for the country.”
Last year, BHGE had signed a partnership agreement with the Ministry of Oil to strengthen the performance of the Iraq energy sector by providing advanced equipment, technology upgrades, maintenance of the Ministry of Oil fleet and ensuring knowledge transfer, skills development and local jobs.
BHGE said it has also strengthened its localisation initiatives in Iraq with the expansion of its technical services facility in North Rumaila oilfield. It offers a wide range of testing, repair and refurbishment services for its customers in the country as well as undertakes fabrication and assembly of key products establishing BHGE as a complete technical solutions provider.