The Kurdistan Regional Government has announced the successful delivery via pipeline of the first quantities of natural gas from the gas field at Summail to fuel the Duhok Power Station (pictured).
The Summail Gas Field lies within the area of the Duhok Production Sharing Contract (PSC) and is operated by the Norwegian company DNO, which together with Anglo-Turkish PSC partner Genel Energy, signed a landmark gas sales agreement (GSA) with the KRG on 18 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 itis hoped that gas production will 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 six turbines have been run on expensive diesel until now, 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 that 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.