Dana Gas, the Middle East’s leading private sector and publicly-listed natural gas company, and Crescent Petroleum, the region’s private upstream oil and gas company, have announced the start of commercial gas sales from the KM250 gas expansion project (“KM250”) at the Khor Mor facility in the Kurdistan Region of Iraq (KRI).
Delivered eight months ahead of the revised schedule, the
KM250 will add 250 million standard cubic feet per day (MMscf/d) of new
processing capacity, a 50 per cent increase, boosting Khor Mor’s total output
to 750 MMscf/d.
The additional capacity will help meet Iraq’s rapidly
growing power demand by delivering significant new volumes of clean-burning
natural gas.
The expansion will bolster power generation and support
industrial growth across the KRI, underpinning the KRG’s Runaki initiative to deliver
24-hour electricity, while improving supply to other regions of Iraq.
The $1.1 billion project was backed by financing from 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
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 the largest private-sector infrastructure builds in Iraq in recent years.
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said: “Delivering KM250 ahead of schedule marks a significant achievement for Crescent Petroleum, Dana Gas, and our Pearl Consortium partners. This accomplishment highlights our ongoing dedication to the Kurdistan Region of Iraq, demonstrates our capacity to unlock its vast energy resources, and reinforces our commitment to generating jobs, enhancing local services, and providing cleaner, more reliable energy for the Region and the Country. I am especially grateful for the strong support of the KRG and local authorities, whose cooperation helped us overcome challenges and sustain momentum throughout the project. I would also like to recognise the outstanding leadership of Richard Hall, CEO of Dana Gas, who navigated the complex dynamics and guided the project to successful completion eight months ahead of schedule.”
Richard Hall, CEO, Dana Gas, said: “Completing KM250 early is a huge milestone for Dana Gas and reflects the hands-on approach we brought to the project in the absence of the main contractor. By assuming operational oversight, Dana Gas and Crescent Petroleum were able to focus delivery, resolve issues quickly, and restore momentum – yielding real results on the ground. The additional capacity strengthens our production profile and is expected to deliver substantial annual revenue for Dana Gas. It also supports our mission to deliver stable, cleaner energy to KRI communities, reduce diesel dependence and advance the region’s ambition for 24-hour electrification.” -OGN/ TradeArabia News Service
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