DUBAI: A UAE consortium has secured $250 million to boost the expansion of a gas plant in the Kurdistan Region of Iraq, as demand for clean natural gas grows.
Pearl Petroleum, comprising Dana Gas and Crescent Petroleum, has signed a financing agreement with the US International Development Finance Corporation (DFC) for the Khor Mor plant, it said in a statement.
The seven-year financing period will support the increase in gas production capacity by 50 percent to 690 million standard cubic feet per (SCF) per day.
“This financing agreement with DFC underscores the importance of developing the natural gas resources in the KRI to support regional economic development and growth,” Pearl Petroleum chief Majid Jafar, said.
Around $630 million is needed for the project, the statement said, and the remaining financing has already been secured through a regional bank facility and the contractor.
Pearl Petroleum has invested around $2.1 billion at Khor Mor, with a total production of over 341 barrels of oil equivalent in natural gas and liquids, which it claims to have cut down carbon emissions by 42 million tonnes.
The natural gas is used for power generation in KRI, replacing diesel fuel.