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US oil field services firm Baker Hughes has signed a deal with Iraq to develop a gas recovery project in the southern province of Dhi Qar.

The project will be equipped to capture 200 million cubic feet per day (MMcf/d) of gas from the Nasiriyah and al-Gharraf fields for power generation.

The deal with state-owned South Gas is part of the Iraq Government’s plan to minimise its dependence on gas imports from Iran, as well as end associated gas flaring.

Iraqi Oil Minister Ihsan Abdul-Jabbar Ismail was cited by Xinhua as saying that the project forms part of the ministry’s plan ‘to stop gas flaring in the coming years and increase clean energy production’.

Deputy Minister of Oil Karim Hattab added: “Baker Hughes began the preparations for the design and construction of this project from early this year, which includes building an integrated plant to process 200 million cubic feet of associated gas from the Nasiriyah and al-Gharraf fields.”

The project will have the capacity to treat 130MMcf/d of flared gas from the al-Gharraf field and 70MMcf/d of flared gas from the Nasiriyah field, according to S&P Global.

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By GlobalData

Ismail was reported by Qatar-based al Jazeera news as saying that the project was initially planned to start at the end of 2018 but was delayed.

In addition to providing jobs for individuals and local contracting companies, the project is expected to contribute to the country’s efforts to boost national gas production.

According to estimates, the country holds 132 trillion cubic feet of proven natural gas reserves. In order to meet the demands, the country is seeking to invest in the associated gas.

Recently, French firm TotalEnergies agreed to invest a total of $27bn in four energy projects in Iraq.