Following extensive discussions, the Iraqi Ministry of Oil and Baker Hughes, a GE Company (BHGE) have signed a contract for the latter to provide mechanisms to help the recovery of flare gas in line with the country’s strategy for energy sector development.
An advanced modular gas processing (NGL) plant has been recommended for Nassiriya as part of the initiative by BHGE, the newly formed oilfield services giant as a result of GE Oil & Gas’s acquisition of Baker Hughes.
As per the agreement, details of which was received by arabianoilandags.com in the form of a press release, BHGE will develop advanced systems to recover flare gas at the Nassiriya and Al Gharraf oilfields, using modular gas processing technology developed in the United States, with the project to be undertaken in two stages.
In the first stage, the advanced modular gas processing solution will be deployed to dehydrate and compress flare gas to generate over 100mn standard cubic feet per day (scf/s) of gas.
The Nassiriya plant will be then expanded to be a complete natural gas liquid (NGL) facility to recover 200mn scf/d of dry gas, liquefied petroleum gas (LPG) and condensate. 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 tonnes 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 Iraqi government.
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Iraqi Oil Minister Jabbar Al-Luaibi has 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. The statement came at the ceremony hosted by the ministry to sign a contract for the project to invest in an optimum solution to recover flare gas in the fields of Nassiriya and Gharraf with BHGE.
Rami Qasem, president for the MENAT and India regions for BHGE, said: “The Iraqi Ministry of Oil has outlined a clear vision and strategy to maximise the utilisation 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,” Qasem was quoted as saying in the press release.
Last year, BHGE had signed a first-of-its-kind 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’s fleet and ensuring knowledge transfer, skills development and local jobs.
BHGE has also strengthened its localisation initiatives in Iraq with the expansion of its technical services facility in the 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.
With three offices in Iraq – Baghdad, Erbil and the Basra – BHGE continues to deliver its latest technology and expertise to local customers. The company has more than 350 employees currently, nearly 95% of them Iraqi professionals.
