The Kurdistan Region Government (KRG) in Iraq is preparing to award an engineering, procurement and construction (EPC) contract on a gas processing project at the Garmian development block, according to the Natural Resources Ministry (MNR).

Iraqi Kurdistan is aiming to utilise associated gas produced from its oil fields to meet local demand from the power sector and develop exports into Turkey and Europe.

“MNR is in the process of awarding an EPC contract to develop the associated gas stream from the Sarqala field [on the Garmian Block] for the domestic market,” said Saad Sadollah, senior adviser to the MNR.

Sadollah added that the ministry is in the process of agreeing with an upstream operator to develop gas assets for process and delivery at the Miran and Bina Bawi blocks. This is non-associated gas with condensate and liquefied petroleum gas (LPG) elements.

“Seven or eight other gas plays are expected to come on stream by 2017,” Sadollah said at the Iraq Petroleum conference in London on 10 June.

The region’s largest gas asset is the Kor Mor field, which produces 300 million cubic feet a day (cf/d) for use in domestic power plants.

Sadollah said that Iraqi Kurdistan has the fourth largest potential for pipeline exports into Europe after the former Soviet Union (FSU), Iran and Algeria.

The KRG has a gas sales agreement with Turkey and could represent 10-20 per cent of the Turkish market if the region’s ambitions are fulfilled.