Dana Gas, an energy company based in the United Arab Emirates, announced on Wednesday that a consortium it co-leads has received $250 million in funding from the US Development Agency to expand gas production at the Khor Mor plant in Iraqi Kurdistan.
According to Dana, Pearl Petroleum, a partnership managed by Crescent Petroleum of the United Arab Emirates, received 7-year financing from the International Development Finance Corp (DFC).
It is the largest single investment in Iraq by the US Development Agency.
Due to the Covid-19 pandemic, the expansion of the Khor Mor gas plant was suspended last year. However, construction resumed in April this year and it is currently expected to be completed in April 2023.
Pearl Petroleum will deliver natural gas to local power units under an arrangement with Iraq's Kurdistan Regional Government.
Developing gas fields in Kurdistan to power local enterprises will save the region money on gasoline and reduce carbon emissions.
The central Iraqi government has also been working to accelerate the development of its gas industry in order to lessen reliance on Iranian gas.
The overall cost of the project, according to Dana, was $630 million.