Abu dhabi: Crescent Petroleum and Dana Gas PJSC have announced the commencement of commercial gas sales from the KM250 gas expansion project at the Khor Mor facility in the Kurdistan Region of Iraq (KRI). The project, delivered eight months ahead of the revised schedule, adds 250 million standard cubic feet per day (MMscf/d) of new processing capacity, representing a 50 percent increase and bringing Khor Mor’s total output to 750 MMscf/d.
According to Emirates News Agency, the additional capacity will help meet Iraq’s increasing power demand by delivering substantial volumes of natural gas. This expansion aims to bolster power generation and support industrial growth across the KRI, underpinning the KRG’s Runaki initiative for 24-hour electricity, while also improving supply to other regions of Iraq.
The $1.1 billion project was financed by 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 the 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 Iraq’s largest private-sector infrastructure builds in recent years.
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, stated that delivering KM250 ahead of schedule signifies a significant achievement for the companies and their Pearl Consortium partners. Richard Hall, CEO of Dana Gas, added that the additional capacity strengthens their production profile and is expected to generate substantial annual revenue.
The gas from KM250 will address the 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. The facility includes advanced technology, such as AI monitoring tools and high-efficiency compressors, to enhance efficiency and reduce environmental impact.
With KM250 operational, the focus now shifts to 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. Established in 2009, Pearl Petroleum, with Dana Gas and Crescent Petroleum as joint operators, supplies natural gas to four power plants across the KRI, meeting over 80 percent 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 percent in 2024 and reducing overall energy consumption by 5 percent, achieving a low carbon intensity, supplemented by offsets to effect carbon neutrality.