Crescent Petroleum, the oldest private oil and gas company in the region, and Dana Gas PJSC, a leading natural gas company in the Middle East, have announced the launch of commercial gas sales from the KM250 gas expansion project at the Khor Mor facility in the Kurdistan Region of Iraq (KRI).
Completed eight months ahead of schedule, KM250 will increase processing capacity by 250 million standard cubic feet per day (MMscf/d), a 50% rise, raising Khor Mor’s total output to 750 MMscf/d. This expansion will meet Iraq’s growing power needs by providing significant new volumes of clean natural gas.
The project will enhance power generation and support industrial growth in the KRI, aligning with the KRG’s Runaki initiative for 24-hour electricity and improving supply to other parts of Iraq.
Funded with $1.1 billion from the Bank of Sharjah, the US Development Finance Corporation (DFC), and proceeds from Pearl Petroleum’s $350 million bond issued in 2024, the project employed over 10,000 people and delivered more than 6,000 tonnes of steel, making it one of the largest private infrastructure projects in Iraq recently.
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, stated: “Completing KM250 ahead of schedule is a significant achievement for Crescent Petroleum, Dana Gas, and our Pearl Consortium partners. It underscores our commitment to the Kurdistan Region of Iraq, our ability to unlock its energy resources, and our dedication to job creation, service enhancement, and reliable energy provision for the region and country.”
“I am grateful for the KRG and local authorities’ strong support, which helped us overcome challenges and maintain momentum. I also commend Richard Hall, CEO of Dana Gas, for his leadership in navigating project complexities and ensuring its early completion.”
Richard Hall, CEO of Dana Gas, commented: “Finishing KM250 early is a major milestone for Dana Gas, showcasing our proactive project management. By overseeing operations, Dana Gas and Crescent Petroleum swiftly addressed issues, maintaining project momentum and achieving tangible results.”
“The increased capacity strengthens our production profile and is expected to generate substantial annual revenue for Dana Gas. It also supports our mission to deliver stable, cleaner energy to KRI communities, reduce diesel reliance, and advance the region’s goal for continuous electrification.”
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas
M250 project overview
The gas from KM250 will address increasing power demands in the KRI and Iraq. The plant also produces 7,000 barrels per day of condensate and 460 tonnes per day of LPG, enhancing the existing output of 15,200 bbl/d and 1,070 t/d respectively.
Incorporating advanced technology, the facility features AI monitoring tools, high-efficiency compressors, and modern processes for sulphur and contaminant removal, boosting efficiency and reducing environmental impact.
In 2024, Dana Gas and Crescent Petroleum took operational control of KM250, collaborating with Havatec and other partners. Their accelerated strategies led to early project completion and gas sales.
KM250 demonstrates both companies’ expertise in delivering complex natural gas infrastructure. The knowledge gained will inform future regional projects.
With KM250 now operational, the focus shifts to further appraising and expanding the Khor Mor field and progressing at Chemchemal to unlock additional gas resources for the region and country.
Pearl Petroleum
Founded in 2009 as a consortium, Pearl Petroleum is jointly operated by Dana Gas and Crescent Petroleum, each holding a 35% equity stake, with OMV, MOL, and RWE each owning 10%. Pearl supplies natural gas to four power plants in the KRI, meeting over 80% of the region’s power needs and serving more than six million people.
With 85% national employment and over 20,000 jobs created, Pearl significantly contributes to the KRI economy. Clean natural gas from Khor Mor has reduced CO2 emissions by over 59 million tonnes by replacing oil and diesel. Pearl has enabled substantial fuel cost savings and driven regional economic growth.
Pearl remains committed to carbon neutrality, having cut total GHG emissions by over 20% in 2024 to 200 kTCO2e and reduced energy consumption by 5%, resulting in a carbon intensity of 4.4kg CO2/Boe, among the industry’s lowest, supplemented by offsets to achieve carbon neutrality.
