A Chinese energy company has been awarded a contract to recover natural gas from Iraq's Halfaya oil field to fuel power stations in the country's underserved Maysan province.

The China Petroleum Engineering and Construction Corporation says its gas processing plant will be able to recover and refine 300 million standard cubic feet of gas daily.

For decades, Iraqi oilfields have burned off the hydrocarbon byproducts of crude oil drilling. Now, Iraq says it wants to capture natural gas to generate electricity and address the power shortages that plague the country.

The Halfaya oilfield is operated by PetroChina. CPECC says its gas plant will be operational in 30 months. Representatives from CPECC, PetroChina, and the Ministry of Oil signed an agreement in Baghdad on Wednesday.