An exhaust system with a first and a second exhaust conduit arranged in a parallel flow arrangement. The exhaust system further includes an exhaust gas heat recovery (EGHR) heat exchanger coupled to an exterior of the first exhaust conduit. The exhaust system further includes a first flow control valve controlling the flow of exhaust gas into the EGHR heat exchanger from the first exhaust conduit and a second flow control valve controlling the flow of exhaust gas through the second exhaust conduit.