Iraq inaugurates gas processing plant in Halfaya oil field

Iraqi prime minister Mohammed S. Al-Sudani inaugurated the associated gas processing project in the Halfaya oil field in Maysan Province on June 8, according to a statement from the prime minister’s media office. The new plant has a production capacity of 300mn ft³/day.

This project supports Iraq’s economic reform and optimal investment goals by aiming to halt gas flaring, which otherwise leads to wastage and environmental harm, the media office stated. The processed gas will be supplied to power plants, reducing the need for imports and the associated foreign currency expenditure.

Al-Sudani noted that Iraq's daily gas production has increased from 2,972mn ft³ in 2022 to 3,100mn ft³ today, with only 1,800mn ft³ currently being utilised. He highlighted that the percentage of associated gas utilisation has risen from 50% to 61%, with plans to fully utilise all produced gas and achieve zero gas flaring by 2028.

The plant consists of two units, each with a capacity of 150mn ft³. The gas produced will power the Amara and Maysan power stations, generating over 1,200 MW. Additionally, the project will produce liquid gas and gas condensates.

In April, Iraqi and US companies signed agreements to capture natural gas traditionally flared from Iraq's oilfields and use it to produce domestic power while reducing dependence on neighboring Iran for energy.