Baker Hughes has signed an agreement with Iraq-based Halfaya Gas Company (HGC) to advance the development of a flare gas recovery system at the Bin Umar gas processing plant in southeastern Iraq. The project aims to significantly cut upstream flaring while converting waste gas into valuable energy products, aligning with Iraq’s energy transition and environmental priorities.
Building on a previously announced memorandum of understanding and the completion of a pre-FEED study, the agreement marks a critical step in Iraq’s long-term strategy to eliminate routine flaring.
Once operational, the system is expected to recover up to 300 million standard cubic feet per day (MMSCFD) of flared gas — equivalent to about 32 billion kilowatt-hours of energy annually, comparable to powering two million Iraqi households. The recovered gas will be converted into treated dry gas, liquefied petroleum gas (LPG), and condensate for both domestic consumption and export.
Beyond flare gas recovery, Baker Hughes and HGC will also collaborate on upstream oilfield development. The agreement includes exploring opportunities to develop local maintenance and repair services as well as industrial manufacturing collaboration, leveraging Baker Hughes’ Oilfield Services & Equipment expertise.
“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, CEO of Raban Al Safina for Energy Projects (RASEP – part of RAS Group).
“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 Energy Equipment, Industrial & Energy Technology at Baker Hughes. “This agreement is a testament to our shared commitment to driving progress at scale and represents another significant milestone in Baker Hughes’ journey to help customers achieve more sustainable and efficient operations.”
The Bin Umar project is being developed by HGC, a special purpose company owned by RASEP (part of RAS Group), under a 15-year BOOT contract with South Gas Company, a subsidiary of the Iraqi Ministry of Oil.
The flare gas recovery system forms part of Baker Hughes’ emissions abatement solutions portfolio, which emphasizes improving productivity and efficiency while delivering value at scale across global operations.
