Iraq has signed a preliminary agreement with US-based Morgan Hughes Energy to develop projects aimed at recovering and utilising associated gas currently being flared at oil production sites across the country.

The memorandum of understanding (MoU) was signed in Baghdad between Morgan Hughes Energy and Iraq’s General Company for Carbon Economics (GCCE), with the country’s Minister of Environment, Sarwa Abdulwahid, and US Chargé d’Affaires, Steven Fagin, in attendance.

Under the proposed partnership, the companies plan to capture low-pressure associated gas from oil fields and use it to generate electricity for production facilities. The initiative is expected to reduce gas flaring and limit the facilities’ dependence on Iraq’s national electricity grid.

The agreement also provides for the development of carbon credit projects based on internationally recognised monitoring and verification standards. This could allow Iraq to generate additional revenue through carbon markets while supporting its efforts to reduce greenhouse gas emissions.

Morgan Hughes Energy said it would contribute American technology and technical expertise to support the projects, with the broader objective of strengthening Iraq’s energy security and hydrocarbon sector.

The US company operates across the upstream and midstream oil and gas industries, with interests in the Middle East covering offshore gas production, pipeline infrastructure and gas storage.

However, the MoU is an initial step towards a wider partnership, with specific projects yet to be developed and agreed upon.