Crescent Petroleum and affiliate Dana Gas have reached a production and processing capacity of 200 million cubic feet (mcf) of gas per day in Iraq’s Kurdistan region, said a company statement.
Last year Crescent and Dana Gas from the United Arab Emirates formed a consortium with Austria’s OMV and Hungary’s MOL that aims to pump enough gas from Iraq’s Kurdistan region to kick-start the Nabucco pipeline to Europe via Turkey.
The consortium has invested over $850 million under contracts signed with the Kurdistan Regional Government in April 2007, said the statement.
“The investment by the companies is the largest energy investment in Iraq today, and has already delivered tangible benefits for the people of the Kurdistan Region and all of Iraq in terms of enabling electricity supply and fuel cost savings,” said Majid Jafar, executive director of Crescent Petroleum.
Gas production is in the range of 160-180 million cubic feet per day, which will meet the demand of the two gas-fired power stations in Erbil and Chemchemal.
The stations have a combined capacity of 1,250 megawatts, which provides almost continuous electricity to the communities of the Kurdistan Region, it added.
In total, over 72 billion cubic feet of gas and 3.3 million barrels of liquids have been produced since the start of production in October 2008.
Production capacity from the project is expected to rise to 300 mcf of gas per day by 2012, as well as 14,000 barrels per day of condensate and 1,000 tonnes per day of liquid petroleum gas (LPG), from a new LPG plant currently under commissioning in preparation for start-up later this month.