US finances $250 million for expanding gas plant in Kurdistan Region: Companies

ERBIL (Kurdistan 24) – The US government has contributed $250 million to expand the Khor Mor gas plant project in the Kurdistan Region, the managing companies announced on Wednesday.

The sum was financed by the US International Development Finance Corporation (DFC) to increase production capacity by 50 percent. This will account to 690 million standard cubic feet (scf)/day, according to a press release from Pearl Petroleum – a consortium led by the UAE’s Dana Gas and Crescent Petroleum.

The ultimate production goal for the gas plant is 1 billion standard cubic feet (scf)/day, according to the release.

“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 (Kurdistan Region of Iraq),” Mr. Dev Jagadesan, the acting CEO of DFC, said.

The development project, which costs $630 million in total, is intended to meet the rising demand for clean natural gas for power generation and industrial use across the Kurdistan Region, according to the twin company.

Up until now, the gas production at the plant has prevented 42 million tons of CO2 going into the air, the company said.

The two companies have been working in the gas plant since 2007. They have exclusive rights to develop, produce, market, and sell petroleum.