Crescent Petroleum And Dana Gas Enhance Khor Mor Gas Capacity By 50% To Meet Growing Demand

Crescent Petroleum and Dana Gas PJSC have commenced commercial gas sales from the KM250 expansion at Khor Mor in Iraq's Kurdistan Region. This project, completed eight months ahead of schedule, increases processing capacity by 250 million standard cubic feet per day (MMscf/d), a 50% rise, bringing 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 KM250 project, valued at $1.1 billion, received financial backing from the Bank of Sharjah and the US Development Finance Corporation (DFC). Additionally, Pearl Petroleum's $350 million senior secured bond issued in 2024 contributed to its funding. 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, stated that completing KM250 ahead of schedule is a major achievement for Crescent Petroleum and its partners. "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," he said.

Richard Hall, CEO of Dana Gas, also expressed satisfaction with the project's early completion. "Completing KM250 early is a huge milestone for Dana Gas," he noted. The increased capacity is expected to enhance production profiles and generate substantial annual revenue for Dana Gas.

The facility features advanced technology such as AI monitoring tools and high-efficiency compressors. These upgrades aim to improve efficiency while reducing environmental impact through modern processes for sulphur and contaminant removal.

The plant will also produce an additional 7,000 barrels per day (bbl/d) of condensate and 460 tonnes per day (t/d) of LPG. This supplements existing outputs of 15,200 bbl/d and 1,070 t/d respectively.

Pearl Petroleum's Role in Regional Energy Supply

Pearl Petroleum was formed in 2009 as a consortium with Dana Gas and Crescent Petroleum as joint operators holding a 35% equity stake each. OMV, MOL, and RWE later joined with a 10% share each. Today, Pearl Petroleum supplies natural gas to four power plants across the KRI meeting over 80% of the region’s power needs serving more than six million people.

The focus now shifts to further appraisal and expansion at Khor Mor field along with continued progress at Chemchemal to unlock additional gas resources for both regional and national benefits.

Commitment to Carbon Neutrality

Pearl Petroleum remains committed to maintaining carbon neutrality having reduced total GHG emissions by over 20% in 2024 to 200 kTCO2e while reducing overall energy consumption by 5%, bringing its total carbon intensity down to 4.4kg CO2/Boe—one of the lowest in the industry—supplemented by offsets for remaining emissions.

With inputs from WAM