Erbil, Kurdistan Region, Iraq - The Kurdistan Regional Government is pleased to announce the successful delivery via pipeline of the first quantities of natural gas from the gas field at Summail to fuel the Duhok Power Station.
The Summail Gas Field lies within the area of the Duhok Production Sharing Contract (PSC) and is operated by Norwegian company DNO, which together with Anglo-Turkish PSC partner Genel Energy, signed a landmark gas sales agreement (GSA) with the KRG on September 18, 2013.
Long-term deliveries are expected to reach 120 million cubic feet per day sold on a take - or - pay basis for the duration of the production - showing the KRG can successfully develop its newly discovered gas assets in Kurdistan.
Under the long - term GSA, the KRG will purchase up to 120mmscf/d. Initial volumes will start at around 55mmscf/d, ramping up to 120mmscf/d within the next few months, and thereafter it is hoped that gas production is to eventually rise to around 200mmscf/d.
The Duhok Power Station is a 750 MW power plant in the city of Duhok, located 40 kilometres from the field. The power station’s 6 turbines until now have been run on expensive diesel due to significant delays in originally expected gas deliveries from the Khor Mor area. Each of the turbines consumes around 24 million litres per month of diesel, or around 27.50mmscf/d natural gas.
The locally-produced natural gas will displace diesel from the power station and is part of a KRG strategy to save the people of Kurdistan millions of dollars every year in costly diesel imports for power generation.
Natural Resources Minister Ashti Hawrami said the successful commissioning of the Duhok Power Station operated by Mass Global, the Kurdistan main and feeder gas pipelines constructed by Kar Group, and the Summail gas facilities built by DNO, represented a significant step forward for the Kurdistan Region.
“It is the result of win-win coordination and cooperation of Ministry of Natural Resources staff, local Kurdistan companies and IOCs to deliver natural gas on a fast-track basis to the benefit of ordinary citizens,” Minister Hawrami said.
KAR Group built the main 36” Kurdistan Gas Pipeline from Summail to the Dohuk Power Station and also the feeder line from the Summail Gas Field connecting to the main Gas pipeline.
Mass Global commissioned their GE Turbines facilities to take the gas.
It is expected that the people of Dohuk will be self-sufficient in locally - generated power by the end of 2015, saving well above $100 million on expensive fuel each month.
The KRG plans to replace diesel with gas in all the Region’s power plants within the next two years.
“The policy is to keep the lights switched on in people’s homes, and provides cheaper, environmentally - friendly power to hospitals, schools and factories,” said Natural Resources Minister, Ashti Hawrami.
Minister Hawrami added: “This important achievement shows that newly discovered gas in Kurdistan can be monetized on a timely basis, and that this is the beginning of creating a gas market in Kurdistan - it is hoped to connect the Kurdistan gas network in Dohuk in the near future to the Gas line that connects to Erbil - to enhance gas deliveries within Kurdistan to the domestic market.”
He said: “The gas specifications meets the Kurdistan gas specifications to ensure the network of gas within Kurdistan meets international standards and can be used in facilities locally or internationally.”