Dana Gas, Crescent Petroleum launch gas supply to Iraq

Iraq has begun receiving natural gas from the Khor Mor field in the Kurdistan Region under a new agreement aimed at boosting electricity generation and easing power shortages, with Dana Gas and Crescent Petroleum supplying 100 million standard cubic feet of gas per day (MMscf/d) to the Kirkuk Taza power station.

The supplies mark the first phase of a one-year agreement signed in December 2025 between the Iraqi Ministry of Electricity and the two companies, which jointly operate the Kurdistan Gas Project. The gas will be delivered from the Khor Mor gas processing facility to support electricity production and improve power services across Iraq.

The milestone follows the completion of the KM250 expansion project in October 2025, which increased processing capacity at Khor Mor by 50 per cent to 750 MMscf/d. The additional capacity has enabled the operators to expand gas sales beyond the Kurdistan Region and supply new markets through the existing pipeline network.

Majid Jafar, CEO of Crescent Petroleum and Managing Director of the Board of Dana Gas, described the first delivery as a significant step in developing the region’s gas sector while supporting Iraq’s growing electricity needs.

“This first delivery of gas to Iraq’s Ministry of Electricity is an important milestone for the companies in their development of the gas sector in the Kurdistan Region, while also further supporting the growing electricity demand for Iraq as a whole, and contributing to improved services for the people of Iraq,” he said.

Jafar thanked the Kurdistan Regional Government, local authorities in Sulaymaniyah and Iraq’s Ministry of Electricity for their support in making the project possible.

Richard Hall, CEO of Dana Gas, said the agreement demonstrates the benefits of the company’s expansion programme and creates opportunities for broader energy cooperation within Iraq.

“By leveraging the additional capacity created through the KM250 expansion, it lays the foundation for more cooperation on energy within Iraq’s growing market, to strengthen energy security while supporting more reliable electricity services,” Hall said.

The Khor Mor gas project currently supplies fuel for more than 80 per cent of electricity generation in the Kurdistan Region, providing power to more than eight million people in the region and other Iraqi governorates.

The project has attracted more than $4 billion in investment to date and generated over 47,000 direct and indirect jobs. The operators expect its economic and energy contribution to grow further as production capacity expands and additional projects come online.