SULAIMANI (ESTA) — United Arab Emirates energy firm Dana Gas said on Wednesday a consortium it co-leads had secured $250 million in financing from the U.S. development agency to fund an expansion of gas production at the Khor Mor plant in the Kurdistan Region.
Pearl Petroleum, a consortium co-led with UAE’s Crescent Petroleum, secured the 7-year financing from the International Development Finance Corp (DFC), Dana said in a statement.
It is the biggest ever financing by the U.S. development agency in Iraq.
Expansion of the Khor Mor gas plant was halted last year due to the COVID-19 pandemic and is now expected to be completed in April 2023 after construction resumed in April this year.
Dana said the total expansion cost was $630 million.
Under an agreement with the Kurdistan Regional Government (KRG), Pearl Petroleum is to supply natural gas to local power stations.
“DFC’s investment in the Khor Mor expansion will substantially increase access to energy for people all across the Kurdistan Region of Iraq,” DFC Acting CEO Dev Jagadesan said.
“This highly developmental project represents the United States’ continuing investment in the KRI,” Jagadesan added.
Dana Gas CEO Patrick Allman-Ward said the deal underscored “our continued confidence in the region and its long-term prospects”.
Developing gas fields in the Kurdistan Region to power local industries would help the region save on fuel costs while also cutting carbon emissions.
The central Iraqi government has also been seeking to speed up development of its gas industry to reduce reliance of gas from neighboring Iran.
