The expansion work at the Iraqi gas plant is on schedule to be completed by April 2023
Pearl Petroleum has secured a $250m financing commitment from the US International Development Finance Corporation (DFC) for its expansion project at the Khor Mor gas plant in Iraq.
The project, which will cost $630m, is being taken up to ramp up the gas production capacity of the plant by 50% to 690 million standard cubic feet (scf)/day.
Pearl Petroleum is a consortium led by the UAE-based Dana Gas and Crescent Petroleum.
The consortium has now secured full funding for the gas expansion project in the Kurdistan region (KRI). The remaining financing has been arranged through a regional bank facility and the engineering, procurement, and construction (EPC) contractor, said Dana Gas.
With the expanded capacity, the Khor Mor gas plant will be able to handle the increasing demand for clean natural gas for power generation and industry in Kurdistan.
DFC acting CEO Dev Jagadesan said: “DFC’s investment in the Khor Mor expansion will substantially increase access to energy for people all across the Kurdistan Region of Iraq. This highly developmental project represents the United States’ continuing investment in the KRI.”
Dubbed as KM-250, the first stage of the two-train expansion project at the Iraqi gas plant aims to increase the total production capacity to nearly one billion scf/day.
Dana Gas said that work on the gas expansion project began in April 2021 after onsite construction was suspended in 2020 because of the Covid-19 pandemic. Presently, it is on schedule to be completed by April 2023.
Crescent Petroleum CEO and Dana Gas board managing director Majid Jafar said: “This financing agreement with DFC underscores the importance of developing the natural gas resources in the KRI to support regional economic development and growth.
“Despite the global challenges presented by the COVID pandemic, we have continued to maintain our record of uninterrupted operations and even managed to grow production.
“The DFC agreement is a testament to our successful track record and further highlights the potential of these resources and the bright future for the KRI.”
The other partners in Pearl Petroleum are OMV and RWE.