Dana Gas (DANA.AD), the UAE-based oil and gas company, is expected to start supplying gas to Iraq's Kurdistan region from a field in northern Iraq in July, the company's executive chairman said in remarks posted by the Kurdistan Regional Government, or KRG, Web site Thursday.
Hamid Jafar said the 50-50 joint venture project with Sharjah's Crescent Petroleum is 80% complete.
Initial production is to start at 150 million cubic feet of natural gas a day, reaching 300 million cubic feet a day in a later stage, company officials have said.
"The project will be completed in July when gas will be supplied to the power plant (in Erbil)," Jafar was quoted as saying.
In a later stage, gas will be also fed to another power plant in Suleimaniya province in northern Iraq. The two power plants are still under construction.
Dana signed a service contract with the KRG in 2007 to develop, process and transport natural gas from the Khor MOR gas field on a fast-track basis, and to appraise the Chemchamal gas field to supply two power generation plants now under construction in Erbil and Suleimaniya provinces.
Dana said total investment in the project has risen to $650 million including the second phase, up from the $400 million the company had announced last year which was the requirement of the first phase.