Dana Gas Begins Natural Gas Supplies to Iraqi Electricity Ministry
The UAE-based company said it has started deliveries from the Khor Mor gas field to support power generation in Kirkuk under an initial one-year supply term.
What Readers Should Know
- Dana Gas said it has commenced supplies of natural gas from Khor Mor to the Iraqi electricity ministry in Kirkuk.
- The companies said 100 MMscf/d will be supplied from the Khor Mor gas processing facility to the Kirkuk Taza power station.
- The initial supply term is one year.
- The firms described the move as a major step to open new markets and deliver gas by pipeline.
- Khor Mor is located in Sulaimani province’s Chamchamal district and is the largest supplier of electricity in the Kurdistan Region.
- The field has an estimated 1.8 trillion cubic feet of natural gas reserves.
The UAE-based Dana Gas on Tuesday announced that it has commenced supplies of natural gas from the Khor Mor gas field to the Iraqi electricity ministry in Kirkuk to assist power generation capabilities.
In a statement, Dana Gas and its affiliate Crescent Petroleum said they will supply 100 MMscf/d of gas from the Khor Mor gas processing facility to Kirkuk Taza power station for an initial term of one year to help improve power generation and services in the country.
The firms hailed the development as a major step to open new markets and deliver much needed gas by pipeline from the Khor Mor gas processing facility.
Located in Sulaimani province's Chamchamal district, the Khor Mor field is the largest supplier of electricity in the Kurdistan Region, with natural gas reserves of around 1.8 trillion cubic feet.
What the companies said
“This first delivery of gas to Iraq’s Ministry of Electricity is an important milestone for the companies in their development of gas sector in the Kurdistan Region, while also further supporting the growing electricity demand for Iraq as a whole, and contributing to improved services for the people of Iraq,” said Crescent Petroleum CEO Majid Jafar.
Security and supply background
Khor Mor has long served as a strategic target for Iran-aligned factions in Iraq, with the commencement of the US-Israeli war on Iran in February leading to the facility being repeatedly attacked and provoking evacuations of staff and halts in production.
Both Erbil and Baghdad have repeatedly vowed to limit the disruptive ability of subversive actors within the country.
Investment and expansion
According to Dana Gas, the company has invested over $4 billion in the Kurdistan Region and directly and indirectly created more than 47,000 job opportunities.
Dana Gas and Crescent Petroleum struck a deal with the Kurdistan Regional Government (KRG) in 2007 to develop the Kurdistan Region’s gas capacities.
In October, Dana Gas began commercial gas sales from a mega expansion project in Khor Mor – known as KM250 – eight months ahead of schedule, boosting the field’s total output by 50 percent to 750 MMscf/d.
Frequently Asked Questions
What did Dana Gas announce?
Dana Gas said it has begun supplying natural gas from Khor Mor to the Iraqi electricity ministry in Kirkuk.
How much gas will be supplied?
The company and Crescent Petroleum said they will supply 100 MMscf/d.
Where will the gas be delivered?
The gas will go from the Khor Mor gas processing facility to Kirkuk Taza power station.
How long is the initial supply term?
The initial term is one year.
What is Khor Mor’s role in the Kurdistan Region?
The article says Khor Mor is the largest supplier of electricity in the Kurdistan Region and has around 1.8 trillion cubic feet of natural gas reserves.
Courtesy: www.thenewregion.com