Iraq, Baker Hughes sign deal on gas recovery project

Iraq’s state-owned South Gas Company and US firm Baker Hughes have signed a deal to launch a gas recovery project that could generate 200 million cubic feet of gas, the oil ministry said on its website.

The project, which will capture associated gas in southern Nasiriya and Gharraf oilfields in the Dhi Qar province, will be used to produce clean energy, Iraq’s oil minister Ihsan Abdul Jabbar Ismaael said.

The project was supposed to start at the end of 2018 but has faced delays, he said. The oil ministry said the project is now set for completion around the middle of 2024, as Baker Hughes began the design and manufacture earlier this year, he added.

The captured gas will be used to generate electricity. This is expected to reduce Iraq’s dependence on unreliable imports of electricity and gas from Iran, which is under US sanctions.