Source : WAM
Dana Gas PJSC and Crescent Petroleum, together with their partners in the Pearl Petroleum Consortium, have announced a series of long-term Gas Sales Agreements (GSAs) to supply significant volumes of clean-burning natural gas from the Chemchemal field to major industrial consumers in the Kurdistan Region of Iraq (KRI).
Under the agreements, industrial customers in the cement and steel sectors will collectively purchase up to 142 million standard cubic feet per day (MMscf/d) of gas over a 10-year period, starting in the second half of 2027 when production from the Chemchemal field is expected to commence.
The Chemchemal field is currently under development, with new pipelines to be constructed by private-sector companies to deliver gas to industrial users in Erbil and Bazian. This includes a dedicated 40-kilometre pipeline connecting the Chemchemal field directly to industrial consumers in the Bazian area.
The GSAs were signed with Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, and Sulaimani Cement, all located in the Bazian industrial zone of Sulaymaniyah province, as well as with Van Steel Company in Erbil governorate.
Earlier in 2025, the Pearl Petroleum partners initiated activities to appraise the Chemchemal Cretaceous reservoir and commence production from the field. Building on the field’s considerable potential, the partners have committed US$160 million to drill three wells, install an extended well test (EWT) facility, and construct associated infrastructure to support a subsequent full-field development phase, which will expand gas supply to additional users.
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said, “These agreements mark a significant milestone in the development of the KRI’s energy infrastructure, delivering considerable supplies of clean burning natural gas to empower growth in the region’s industry and help displace the use of dirtier, more expensive heavy fuel oils.
The milestone underscores the exciting new chapter for the Pearl Petroleum consortium, combining the recent completion of the KM-250 expansion project in October 2025, the appraisal and development of the Chemchemal Field, and other development plans that will considerably enhance the energy sector and economy of the Kurdistan Region and the rest of Iraq.”
Richard Hall, Chief Executive Officer, Dana Gas, commented, “This agreement supports the growing energy needs of the Kurdistan Region of Iraq and strengthens the role of natural gas as a fuel source for its industrial base. By supplying competitive, lower-emission gas to the Bazian industrial corridor, we are helping replace polluting heavy fuel oil, reduce emissions and improve energy efficiency for key industries.”
He added, “Beyond energy supply, this agreement supports industrial growth, local employment and long-term economic activity in the communities surrounding the Bazian corridor.”
In early October 2025, Dana Gas and Crescent Petroleum successfully completed the Khor Mor 250 (KM250) gas expansion project in the KRI, eight months ahead of the revised schedule.
The project added 250 MMscf/d of new gas processing capacity, along with additional daily LPG and condensate output of 460 MTPD and 7,000 barrels, bringing total gas processing capacity to 750 MMscf/d a 50 percent increase.
The Khor Mor gas plant supplies fuel for more than 80 percent of the KRI’s electricity generation, providing affordable power to over 6 million residents in the KRI and other Iraqi governorates.
With total investment exceeding US$3.5 billion to date, the operations have created more than 20,000 direct and indirect jobs in the region. This impact is expected to grow significantly in the coming years with the increased capacity and new projects.
