Dana Gas and Crescent Petroleum Boost Khor Mor Gas Capacity by 50%

ERBIL (Kurdistan24) — Dana Gas and Crescent Petroleum have announced the early completion and start of commercial gas sales from their KM250 expansion project at the Khor Mor gas field in the Kurdistan Region, boosting the facility’s total capacity by 50 percent.

Delivered eight months ahead of schedule, the KM250 project adds 250 million standard cubic feet per day (MMscf/d) of new gas processing capacity, increasing Khor Mor’s total output to 750 MMscf/d. The $1.1 billion expansion is expected to significantly enhance Iraq’s power generation capacity and industrial development, supporting the Kurdistan Regional Government’s (KRG) Runaki initiative to achieve an uninterrupted electricity supply.

Funded through financing from the Bank of Sharjah, the U.S. International Development Finance Corporation (DFC), and proceeds from Pearl Petroleum’s $350 million bond issued in 2024, the project stands as one of Iraq’s largest private-sector energy infrastructure developments.

It employed more than 10,000 workers, utilized over 6,000 tons of steel, and recorded 6.2 million man-hours during construction.

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, hailed the early delivery as “a significant achievement,” emphasizing the companies’ long-term commitment to the Kurdistan Region and their role in “unlocking vast energy resources, generating jobs, and delivering cleaner, more reliable energy.”

He praised the KRG and local authorities for their “strong support and cooperation,” and commended the leadership of Dana Gas CEO Richard Hall for driving the project’s completion ahead of schedule.

Hall described the early completion as “a huge milestone” for Dana Gas, noting that assuming direct operational oversight helped accelerate delivery.

“The additional capacity strengthens our production profile and is expected to deliver substantial annual revenue while advancing the region’s goal of 24-hour electrification,” he said.

The KM250 facility integrates advanced technology, including AI-based monitoring, high-efficiency compressors, and improved systems for sulphur and contaminant removal to enhance operational efficiency and reduce environmental impact.

It will produce an additional 7,000 barrels per day of condensate and 460 tons per day of LPG, supplementing existing outputs of 15,200 bbl/d and 1,070 t/d, respectively.

Earlier this year, the Khor Mor gas field and several oil fields were targeted by a series of drone attacks launched by Iran-backed Iraqi militias from inside Iraq, causing temporary operational disruptions and heightening security concerns in the area.

The assaults, which targeted facilities operated by the Pearl Petroleum consortium, prompted Dana Gas and Crescent Petroleum to temporarily halt their operations and coordinate closely with the Kurdistan Regional Government (KRG) and local security forces to enhance site protection and safeguard personnel.

The Iraqi federal government launched an investigation and identified those responsible. However, it has not publicly disclosed the names of the militia groups behind the coordinated drone strikes on Khor Mor and other oil and gas facilities across the Kurdistan Region.

Despite these incidents, the companies sustained operations and continued project development, reaffirming their long-term commitment to the Kurdistan Region’s energy stability and economic growth.

With the new capacity online, Dana Gas and Crescent Petroleum plan to advance the next phase of development — further expanding the Khor Mor field and progressing work at Chamchamal to unlock additional gas resources for the region and Iraq.

Pearl Petroleum, the consortium operating Khor Mor, includes Dana Gas and Crescent Petroleum as joint operators with 35% equity each, alongside partners OMV, MOL, and RWE.

The consortium supplies gas to four power plants across the Kurdistan Region, meeting over 80% of the region’s electricity needs and serving more than six million people.

Through its clean natural gas operations, Pearl Petroleum has helped avoid over 59 million tons of CO₂ emissions and achieved a 20% reduction in greenhouse gas emissions in 2024, maintaining one of the lowest carbon intensities in the industry.

Headquartered in Sharjah, Dana Gas is the Middle East’s first publicly listed private-sector natural gas company, with operations in the UAE, Egypt, and the Kurdistan Region.

Crescent Petroleum, its largest shareholder, is the Middle East’s oldest private upstream company, with over 50 years of experience in international energy operations.