Arab News, Wednesday, Sep 8, 2021 | Muharram 30, 1443
UAE consortium signs $250m financing deal for Iraq gas plant expansion
Emirates:
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.