An Emirati company and British-based alternative investment firm Man said Monday they were launching a fund to invest in the use of associated gas to generate power and reduce environmental damage.
The International Petroleum Investment Company (IPIC), owned by the government of oil-rich Abu Dhabi in the United Arab Emirates, has committed an initial 300 million dollars to the fund, a statement said.
The MENA Associated Gas and Global Environment Fund (AGEF) aims to "raise 1.5 billion dollars for investment in projects to capture associated gas from crude oil production and use it to generate electricity," said the statement, issued after the launch ceremony.
Gases from crude oil production have customarily been flared, adding huge amounts of greenhouse gases to the atmosphere annually, the statement said.
The initiative will benefit the environment by reducing damaging gases from oil production while providing new energy, it added.
