Iraq's PM: Iraq increases gas utilization, aims for zero gas flaring by 2028, 8 JUNE

Iraq's PM: Iraq increases gas utilization, aims for zero gas flaring by 2028

Shafaq News/ Iraqi Prime Minister Mohammed Shia al-Sudani announced on Saturday that Iraq's utilization of associated gas has increased to over 60%, with a goal to achieve zero gas flaring by 2028.

During the inauguration of the associated gas processing project at the Halfaya oil field in Maysan governorate, PM Al-Sudani said the facility has a production capacity of 300 million standard cubic feet per day and aims to halt gas flaring and promote environmental sustainability.

"This landmark project is part of our ongoing efforts to maximize the benefits of our oil and gas resources, a process that began in 2019 and has been closely monitored to ensure its completion," al-Sudani said. "It represents a significant step in our economic reform and optimal investment strategies to stop gas flaring and its associated wastage and environmental impact."

Moreover, the Iraqi prime minister emphasized that the gas produced will directly support power generation and reduce the need for imports, which drain hard currency. Gas production has increased from 2,972 million standard cubic feet per day in 2022 to 3,100 million currently, with 1,800 million standard cubic feet per day being utilized.

"The investment in associated gas has risen from 50% to 61%, with ongoing efforts to utilize all gas produced and achieve zero flaring by 2028."

The project, completed under oil licensing rounds, comprises two units, each with a capacity of 150 million standard cubic feet. It processes and dries the gas, separating its main components to produce dry gas for the national grid, powering the Amara government and Maysan investment power plants, generating over 1,200 megawatts.

Additionally, the project produces liquid gas to meet Maysan's needs, starting with an initial capacity of 1,100 tons per day, which will increase to 2,200 tons per day for household and automotive use. The surplus will be transported to other governorates. 

The facility also produces gas condensates at a rate of 20,000 barrels per day, which are blended with crude oil to enhance its quality. Sulfur is also produced as a byproduct, with a production capacity of 20 to 40 tons, and is marketed through the Iraqi Oil Marketing Company (SOMO).

Deputy Prime Minister for Energy and Oil Minister Hayan Abdul Ghani highlighted that the Halfaya gas processing project represents a significant advancement in the oil industry and associated gas utilization, transforming it into beneficial energy that supports Iraq's energy sector.

Abdul Ghani acknowledged the collaborative efforts of PetroChina and Maysan Oil Company, highlighting that the project's design capacity is 300 million standard cubic feet per day, comprising two units, each capable of processing 150 million standard cubic feet per day.

The project aims to refine and dry the gas, then separate its core components to produce:

- Dry gas for the national grid, powering local electricity generation stations.

- Liquid gas for cooking and automotive use, with an initial capacity between 1,100 and 1,200 tons per day.

- Gas condensates, blended with crude oil to improve market quality.

The project also contributes to sulfur production as a byproduct, with a capacity of 20 to 40 tons, marketed by SOMO.

For his part, Deputy Minister for Gas Affairs Izzat Saber underscored that the project aligns with government and ministry commitments to halt gas flaring and support clean energy initiatives. 

"The ministry succeed in utilizing 61% of associated gas, with plans to increase this to 78% by year-end, continuing efforts to convert flared gas into useful energy."