Iraq and US firm sign deal to capture flared gas for power generation

Iraq’s General Company for Carbon Economics (GCCE) has signed a memorandum of understanding with US-based Morgan Hughes Energy to develop projects that capture and utilise associated gas currently burned off at oil production sites across the country.

Agreement signed in Baghdad

The MoU was signed in the Iraqi capital by Morgan Hughes Energy Managing Director Gregory Bloom and GCCE, under the patronage of Iraq’s Minister of Environment, Sarwa Abdulwahid. US Chargé d’Affaires Steven Fagin also attended the ceremony.

Project objectives

The proposed partnership will focus on recovering low-pressure associated gas and converting it into electricity for oil production facilities. This is expected to reduce gas flaring and decrease the facilities’ dependence on Iraq’s national power grid.

The initiative also aims to develop carbon credit projects using internationally recognised monitoring and verification standards. These credits could generate revenue through carbon markets while helping Iraq meet its emissions reduction targets.

US expertise and company background

Morgan Hughes Energy stated it plans to bring American expertise and technology to the projects, supporting Iraq’s energy security and hydrocarbon development. The company operates in the upstream and midstream oil and gas sectors, with interests across the Middle East, including offshore gas production, pipeline infrastructure, and gas storage facilities.

The MoU represents an initial step towards a broader strategic partnership between the two companies. Specific projects remain subject to further development.