Iraq’s SGC lets contract for gas processing plant

Jan. 25, 2021
State-owned South Gas Co.—a subsidiary of Iraq’s Ministry of Oil—has let a contract to a division of Baker Hughes Co. to provide a series of services and equipment for a new 200-MMcfd natural gas processing plant to be built in Dhi Qar Province.

State-owned South Gas Co. (SGC)—a subsidiary of Iraq’s Ministry of Oil—has let a contract to a division of Baker Hughes Co. to provide a series of services and equipment for a new 200-MMcfd natural gas processing plant to be built in Dhi Qar Province.

As part of the contract, the Baker Hughes Turbomachinery & Process Solutions (TPS) team will deliver design, manufacturing, delivery, construction, and commissioning of the integrated plant that will process previously flared natural gas from Iraq’s Nassiriya and Gharraf oil fields, Baker Hughes said in its fourth-quarter and yearend-2020 earnings report to investors.

Alongside overseeing construction and startup of the plant, Baker Hughes said it also will supply compression equipment, digital monitoring systems, and other unidentified services for the project.

Once in operation, the gas plant will reduce estimated carbon dioxide (CO2) emissions from Nassiriya and Gharraf oil fields by more than 6 million tonnes/year, according to the service provider.

Further details regarding the project were not disclosed.

This latest contract follows SGC’s 2018 contract award to Baker Hughes—then Baker Hughes, a GE company, ahead of its 2019 divestment—to develop solutions for flare-gas recovery from Nassiriya and Gharraf oil fields using modular skid-mounted gas processing technology for construction of a fully integrated NGL plant at Nasiriya that would recover 200 MMcfd of dry gas, LPG, and condensate (OGJ Online, Aug. 6, 2018).

The previous iteration of the gas plant was scheduled for completion by yearend 2021.