MOSCOW, Aug 23 (Reuters) - Gazprom Neft , the oil arm of Russian gas giant Gazprom , said on Wednesday it has started test production of liquefied petroleum gas (LPG) at Badra field in Iraq.

It said full-scale commercial operations at the gas plant are due to start in the fourth quarter this year. The complex will be able to process 1.6 billion cubic metres of gas per year.

(Reporting by Maria Kiselyova; writing by Vladimir Soldatkin; Editing by Christian Lowe) ((vladimir.soldatkin@reuters.com; +7 495 775 12 42; Reuters Messaging: vladimir.soldatkin.thomsonreuters.com@reuters.net))