UAE-based natural gas giant announces expansion at the Khor Mor gas processing plant in the Kurdistan Region of Iraq
Dana Gas, the UAE-based natural gas company, and its partner Crescent Petroleum, have announced a 30 percent increase in production capacity at the Khor Mor field in the Kurdistan Region of Iraq.
This increase delivers much-needed gas supply to fuel power plants in the region, and marked a major milestone for the companies, which jointly operate on behalf of Pearl Petroleum.
The expansion at the Khor Mor gas processing plant consisted of a series of plant additions and modifications to de-bottleneck throughput, a statement said.
The plant, which began operating in 2008, supplies natural gas from the Khor Mor field by pipeline to power plants in the towns of Chemchemal and Erbil, and will soon supply a new plant in Bazian. The Khor Mor Plant also produces LPG and NGL, which are sold and trucked to the local markets.
Total investment in the Kurdistan gas project to date exceeds $1.4 billion with total cumulative production over 250 million barrels of oil equivalent (boe), which has resulted in over $20 billion of fuel cost savings and economic benefits for the Kurdistan Region and Iraq as a whole.
Further investment is underway to expand production over the coming three years, the statement added.
Majid Jafar, CEO of Crescent Petroleum and managing director of Dana Gas, said: “This production increase marks an important milestone as we also commemorate ten years of continuous production, and the beginning of a new chapter of expansion in operations and production which will see a further investment of over $600 million over the coming few years and a more than doubling of production again.
"The gas we have produced has led to significant fuel savings and social and economic value for the economy, and we hope to grow this in the years to come from the significant resources of these world class fields, for the benefit of the Kurdistan Region and all of Iraq.”
The Kurdistan gas project was established in 2007 as Dana Gas and Crescent Petroleum entered into agreement with the Kurdistan Regional Government (KRG) for exclusive rights to appraise, develop, produce, market, and sell petroleum from the Khor Mor and Chemchemal fields.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.