debrobb
07-29-2008, 11:07 AM
DUBAI, July 29 (Reuters) - United Arab Emirates-based Crescent Petroleum and its affiliate Dana Gas DANA.AD will begin supplying natural gas in Iraq's Kurdish region in August, an executive director at Crescent said on Tuesday.
The $650-million project will initially supply 150 million cubic feet per day (cfd) to Kurdish power plants, rising to 300 million cfd in early 2009, the companies said in a statement.
"Gas supplies will begin in August," Majid Jafar, executive director of Crescent Petroleum and board member of Dana Gas, told Reuters. The companies last said supplies would start up in mid-2008.
Dana and Crescent signed the deal to redevelop the Khor Mor field in the semi-autonomous Kurdish region to supply gas to the power plants in April 2007. The field was shut after the first Gulf War in 1991.
The gas will go to a power plant in Arbil and another in Sulaimaniya, with combined generation capacity of 1,250 megawatts.
The plants will save Iraq over $2 billion annually in fuel costs, the companies said -- cash the government currently spends on oil products for small power generators.
"We as regional companies can address what Iraq and other countries in the region really need..., which is utilising gas resources locally," Jafar said.
http://www.reuters.com/article/rbssOilGasExplorationProduction/idUSL915179920080729
The $650-million project will initially supply 150 million cubic feet per day (cfd) to Kurdish power plants, rising to 300 million cfd in early 2009, the companies said in a statement.
"Gas supplies will begin in August," Majid Jafar, executive director of Crescent Petroleum and board member of Dana Gas, told Reuters. The companies last said supplies would start up in mid-2008.
Dana and Crescent signed the deal to redevelop the Khor Mor field in the semi-autonomous Kurdish region to supply gas to the power plants in April 2007. The field was shut after the first Gulf War in 1991.
The gas will go to a power plant in Arbil and another in Sulaimaniya, with combined generation capacity of 1,250 megawatts.
The plants will save Iraq over $2 billion annually in fuel costs, the companies said -- cash the government currently spends on oil products for small power generators.
"We as regional companies can address what Iraq and other countries in the region really need..., which is utilising gas resources locally," Jafar said.
http://www.reuters.com/article/rbssOilGasExplorationProduction/idUSL915179920080729