Dana Gas, Crescent Petroleum Start Gas Sales in KRI

Crescent Petroleum and the Sharjah-based Dana Gas on Wednesday said that they have started the commercial gas sales from the KM250 gas expansion project (KM250) at the Khor Mor facility in the Kurdistan Region of Iraq (KRI).

Delivered eight months ahead of the revised schedule, the $1.1 billion KM250 project will add 250 million standard cubic feet per day (MMSCF/D) of new processing capacity, a 50 percent increase, boosting Khor Mor’s total output to 750 MMSCF/D.

The additional capacity will help meet Iraq’s rapidly growing power demand by delivering significant new volumes of clean-burning natural gas. The expansion will bolster power generation and support industrial growth across the KRI, underpinning the KRG’s Runaki initiative to deliver 24-hour electricity, while improving supply to other regions of Iraq.

The project was backed by financing from the Bank of Sharjah, the US Development Finance Corporation (DFC), and proceeds from Pearl Petroleum’s $350 million senior secured bond issued in 2024 and listed on Nordic Alternative Bond Market.

At its peak, the project employed over 10,000 people and involved the delivery of more than 6,000 tonnes of steel and 6.2 million man-hours, making it one of the largest private sector-project built in Iraq in recent years.

Significant Achievement

Crescent Petroleum CEO and Managing Director of Dana Gas Majid Jafar said that delivering KM250 ahead of schedule marked a significant achievement for Crescent Petroleum, Dana Gas, and their Pearl Consortium partners.

“This accomplishment highlights our ongoing dedication to the Kurdistan Region of Iraq, demonstrates our capacity to unlock its vast energy resources,” Jafar added.

Dana Gas CEO Richard Hall said that completing KM250 project early is a huge milestone for Dana Gas as adding that the additional capacity strengthens production profile and is expected to deliver substantial annual revenue for Dana Gas.

The gas from KM250 will serve growing power demand in the KRI and the rest of Iraq. The plant will also produce 7,000 barrels per day of condensate and 460 tonnes per day of LPG, supplementing existing output of 15,200 barrels per day and 1,070 tons per day, respectively.

The facility incorporates state-of-the-art technology, including AI monitoring tools, high-efficiency compressors, and modern processes for sulphur and contaminant removal. These upgrades will boost efficiency and reduce environmental impact.

With KM250 operational, focus now shifts to the next phase: further appraisal and expansion of the Khor Mor field, and continued progress at Chemchemal to unlock additional gas resources for the region and the country.

Pearl Petroleum was established in 2009 as a consortium, with Dana Gas and Crescent Petroleum serving as joint operators and each holding a 35% equity stake. OMV, MOL, and RWE later joined the partnership, each acquiring a 10% share.

Today, Pearl Petroleum supplies natural gas to four power plants across the KRI, meeting over 80% of the region’s power needs and serving more than six million people.

Pearl Petroleum remains committed to maintaining carbon neutrality having reduced total GHG emissions by over 20% in 2024, while reducing overall energy consumption by 5%, bringing its total carbon intensity to 4.4kg CO2/Boe.