UAE Based Consortium to Finance Iraqi Gas Growth
The Khor Mor Plant in the Kurdistan Region of Iraq (KRI) is getting a hefty 250 million dollar expansion deal. The UAE consortium Pearl Petroleum took the step, and finalized the financial agreement, for a financing period lasting 7 years. Dana Gas and Cresent Petroleum, the companies which constitute of Pearl Petroleum, signed the deal with the US International Development Finance Corporation (DFC).
According to Reuters, this deal is intended to boost the plant’s yearly capacity for gas production by 50%,in order to reach 690 million cubic feet per day. Although the total financing needed isn’t fully covered by this agreement, the remaining funds will be provided through a regional bank facility and the contractor. This focus on natural gas as a cleaner alternative to other fuels, is in an effort to hopefully fully replace diesel fuel. In a statement, Pearl Petroleum claims that this switch will slash carbon emissions by about 42 tonnes.
Development and investment in Iraq and its sub regions is going steady. Such solid investment endeavors can only mean good things for the future of a country, who has suffered and overcame many travesties. This news came following the heels of a historic summit held in Baghdad in August. The Baghdad Conference for Cooperation and Partnership was seen as a major step into revitalizing Iraqi economy and international cooperation. The future is looking bright for Iraq, as it re-situates itself as an important regional player and an investment hub.
