Iraq awards gas recovery contract to China's CPECC

A Chinese energy company has been awarded a contract to recover natural gas from Iraq's Halfaya oil field to fuel power stations in the country's underserved Maysan province

For decades, Iraqi oilfields have burned off the hydrocarbon byproducts of crude oil drilling instead of capturing them for energy production. Now, Iraq says it wants to recover natural gas to generate electricity and address the power shortages that plague the country.

The Halfaya oilfield is operated by PetroChina. CPECC says its gas plant will be operational in 30 months. Representatives from CPECC, PetroChina, and the Ministry of Oil signed an agreement in Baghdad on Wednesday.

Iraq produces approximately 1 billion cubic feet of gas daily, according to the U.S. Energy Information Administration. The country is planning, or has already initiated, projects to recover another 1.85 billion cubic feet of gas daily, said Oil Minister Thamer Ghadhban on Wednesday.