During the 2025 Gastech Exhibition and Conference, Baker Hughes inked an agreement with Iraq’s Halfaya Gas Company (HGC) to expand cooperation on a flare gas recovery project at the Bin Umar gas processing facility in southeastern Iraq. The initiative aims to cut upstream flaring substantially and convert waste gas into useful products, said the company in a statement.

This agreement follows a previously signed memorandum of understanding (MOU) focused on the Bin Umar development project and the completion of a pre-Front End Engineering and Design (pre-FEED) study.

This project is set to recover as much as 300 million standard cubic feet per day (mmscf/d) of flared gas, translating into roughly 32 billion kilowatt-hours of energy each year—the equivalent of supplying electricity to about 2 million typical households in Iraq. The captured gas will be processed into dry gas, liquefied petroleum gas (LPG), and condensate for domestic use, as well as for export. It serves as a significant step toward Iraq’s commitment to ending routine flaring and advancing its energy transition and environmental objectives.

Additionally, the two parties have also committed to working together on developing upstream oilfields in Iraq, drawing on Baker Hughes’ expertise in its Oilfield Services and Equipment area of specialty.

The Bin Umar project is a major gas processing initiative in southeastern Iraq, designed to capture and utilize associated gas from nearby oilfields that would otherwise be flared. The development aims to support Iraq’s strategy to reduce routine flaring, enhance domestic energy supplies, and create value-added products.