Iraqi-China Partner to Enhance Energy Cooperation Via Halfaya Field

Xinhua

Halfaya Field.

The Chinese Xinhua News Agency published a report praising Baghdad and Beijing's oil-related cooperation. It was also mentioned that PetroChina's Halfaya natural gas processing plant in Maysan Governorate is a step towards Iraq's self-sufficiency.

The report, written by Rajab Dawan, stated that in 2019, PetroChina, the operator of the Halfaya Field, invested more than one billion US dollars in the project, and the plant entered operation in June 2024, making it the first integrated oil and associated gas processing project of this scale in Iraq.

The Xinhua report noted that the project represented a new stage in the development of the country's natural gas industry, as it serves as a the "golden key" to solving the country's natural gas shortage.

Although Iraq possesses abundant oil and gas resources, according to the report, "limited refining and processing capacity has created a crisis of natural gas and electricity shortages, especially in the summer, making it heavily dependent on gas and electricity imports from Iran."

The report noted that "with the United States revoking waivers for importing electricity from Iran last March and imposing pressure on Iraq to halt Iranian gas imports, achieving self-sufficiency in natural gas supplies has become an urgent national priority."

It also added: "the plant's operation comes at an opportune time, as it represents the green heart of the Halfaya Field. It can process approximately three billion cubic meters of associated gas annually and provides 2.25 billion cubic meters of natural gas to power plants, producing approximately 5 billion kilowatt-hours of electricity, enough to meet the needs of approximately four million homes, significantly alleviating the region's electricity shortage."

In addition to improving electricity supplies, the project has achieved tangible economic and environmental benefits, according to the Xinhua report, as the station produces approximately 860,000 tons of liquefied petroleum gas (LPG) annually, which is distributed via trucks to Maysan Governorate and neighboring areas, improving people's livelihoods. The project also produces approximately 900,000 tons of light crude oil and 15,000 tons of sulfur annually, providing additional economic value to local authorities.

The report quoted Jiang Feng, general manager of the Middle East branch of China Petroleum Engineering and Construction Corporation, as saying: "The station has adopted world-class, advanced Chinese technologies. We are not just providing technology, but also bringing the concept of sustainable development to Iraq."

During his attendance at the project's commissioning ceremony, Iraqi Prime Minister Mohammed Shia' Al Sudani considered the project a successful example of cooperation between Iraq and China and a strong source of support for utilising associated gas and ensuring energy security in the country.

Fang Jiazhong, Chairman of PetroChina Halfaya, told Xinhua that the company has adhered to the principle of green development, especially with regard to environmental protection, since entering the Halfaya Field 15 years ago.



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