UAE's Dana Gas, Crescent Petroleum eye gains from $1b Khor Mor expansion in Iraq

Dubai: Sharjah-based Crescent Petroleum and Dana Gas have begun commercial gas sales from the KM250 expansion at the Khor Mor facility in the Kurdistan Region of Iraq (KRI), after completing the project eight months ahead of schedule.

The $1.1 billion initiative adds 250 million standard cubic feet per day (MMscf/d) of new processing capacity, increasing Khor Mor’s total to 750 MMscf/d — a 50% boost. The additional supply will support Iraq’s growing electricity demand and industrial growth, advancing the Kurdistan Regional Government’s (KRG) goal of achieving 24-hour power generation.

KM250 ranks among the largest private energy infrastructure builds in Iraq in recent years.

Pearl Petroleum was set up in 2009 as a consortium, with Dana Gas and Crescent Petroleum serving as joint operators and each holding a 35% equity stake.

OMV, MOL, and RWE later joined the partnership, each acquiring a 10% share. Today, Pearl Petroleum supplies natural gas to four power plants across the KRI, meeting over 80% of the region’s power needs and serving more than six million people.

The expansion will enable production of an additional 7,000 barrels per day of condensate and 460 tonnes per day of LPG, supplementing Khor Mor’s existing output.

State-of-the-art upgrades — including AI-based monitoring systems and high-efficiency compressors — will enhance operational efficiency and lower emissions.

Majid Jafar, CEO of Crescent Petroleum and Managing Director of Dana Gas, said the achievement reflects the consortium’s “commitment to unlocking Iraq’s vast energy resources” and supporting local development through “cleaner, more reliable energy.”

Dana Gas CEO Richard Hall added that assuming direct project oversight helped “restore momentum and deliver results” in the absence of the main contractor, calling the early completion “a major milestone” that strengthens the company’s production and revenue outlook.

With KM250 operational, Crescent Petroleum and Dana Gas plan further appraisal and expansion at Khor Mor and Chemchemal to unlock additional gas reserves.

Through Pearl Petroleum, the consortium supplies over 80% of KRI’s power needs, serving more than six million people and helping avoid 59 million tonnes of CO₂ emissions by replacing oil and diesel with natural gas.

The partners have also achieved carbon neutrality, cutting greenhouse gas emissions by over 20% in 2024 and reducing energy consumption by 5%.