Dana Gas, Crescent Petroleum Sign Long-Term Gas Supply Deals to Boost Kurdistan Region’s Industrial Sector
Under the agreement, 142 million cubic feet of natural gas per day from the Chamchamal field will be supplied to major cement and iron producers for a period of 10 years.
ERBIL (Kurdistan24) – Dana Gas and Crescent Petroleum, key partners in the Pearl Petroleum consortium, on Monday announced the signing of several strategic long-term natural gas sales agreements, marking a major milestone in strengthening the Kurdistan Region’s energy and industrial infrastructure.
Under the agreement, 142 million cubic feet of natural gas per day from the Chamchamal field will be supplied to major cement and iron producers for a period of 10 years. The move is expected to significantly support domestic production while providing a cleaner and more cost-effective energy source for the region’s industrial sector.
Gas deliveries are scheduled to commence in the second half of 2027, coinciding with the start of production at the Chamchamal field. To facilitate supply, plans are underway for the private sector to construct new gas pipelines, including a 40-kilometer line connecting the Chamchamal field directly to the Bazian industrial corridor.
The gas sales agreements were signed in the Bazian industrial area of Sulaimani Province with Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, and Sulaimani Cement, as well as Van Steel Company in Erbil.
Pearl Petroleum Partners has already committed $160 million to the development of the Chamchamal field. The investment includes drilling three new oil wells and upgrading supporting infrastructure to prepare the field for full-scale production.
Majid Hamid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said the agreements represent “an important step in providing clean natural gas to the industrial sector, replacing expensive and environmentally harmful heavy fuels.”
Richard Hall, Chief Executive Officer of Dana Gas, emphasized that the availability of low-cost gas, combined with its environmental advantages, will help generate new jobs and drive sustainable, long-term economic growth across the Kurdistan Region.
The announcement follows the successful completion of the Khor Mor 250 expansion project in October 2025, which increased gas production capacity by 50% to 750 million cubic feet per day. To date, Pearl Petroleum’s total investments in the Kurdistan Region have exceeded $3.5 billion, creating more than 20,000 direct and indirect jobs.