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Home Dinar Guru Updates Iraq

An Iraqi-Chinese partnership to enhance energy cooperation through the Halfaya field

April 10, 2025
in Iraq
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The Chinese Xinhua News Agency published a report by Rajab, praising the level of cooperation on the oil file between Baghdad and Beijing. It also noted that the Halfaya natural gas processing project in Maysan Governorate, implemented by PetroChina, is a step toward achieving self-sufficiency in Iraq.

The report, written by Rajab Dawan and followed by the Iraqi News Agency (INA), stated: “With the first rays of sunshine penetrating the fog of the Tigris River in the morning, Iraqi villager Haider Mustafa entered his kitchen in Maysan Governorate, in the south of the country, as usual. He turned on the gas stove, and a blue flame emanated from it, like a genie emerging from Aladdin’s lamp, liberating us from fuel shortages and improving our lives,'” he said.

He added, “Haider lives near the Halfaya oil field, and his life, as well as that of thousands of Iraqi families in Maysan Governorate, has changed thanks to the operation of the Halfaya natural gas processing plant, which was built by a Chinese company.”

He continued, “In 2019, PetroChina, the operator of the Halfaya oil 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 continued, “The plant’s operation comes at an opportune time, as it represents the green heart of the Halfaya oil 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.”

He added, “In addition to improving electricity supplies, the project has achieved tangible economic and environmental benefits. 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.”

Zainab Rahim, an Iraqi employee working at the station, according to the report, said, “We used to watch the flares uselessly burning associated gas, and it was painful.” Now we see trucks lined up, carrying liquefied petroleum gas to all parts of the country. Gas has become a national resource that drives the economy, and we are very happy.”

During his attendance at the project’s commissioning ceremony, Iraqi Prime Minister Mohammed Shia al-Sudani expressed his great appreciation for PetroChina Halfaya and all the implementing agencies. He considered the project a successful example of cooperation between Iraq and China and a strong source of support for utilizing 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 oil field 15 years ago.

Tags: cooperationenergyenhancefieldhalfayairaqiraqi-chinesepartnershipthethrough”
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