Iraq's Khor Mor Gas Expansion Completed Eight Months Early

Dana Gas and Crescent Petroleum have announced the start of commercial gas sales from the KM250 gas expansion project at the Khor Mor facility in the Kurdistan Region of Iraq, marking a 50% increase in processing capacity.

Completed eight months ahead of schedule, the KM250 project adds 250 million standard cubic feet per day (MMscf/d) of new capacity, boosting Khor Mor's total output to 750 MMscf/d. The expansion - with a total investment of US$1.1 billion - is expected to enhance Iraq's power generation and industrial output while supporting the Kurdistan Regional Government's initiative to deliver 24-hour electricity.

Financed by the Bank of Sharjah, the US Development Finance Corporation (DFC), and proceeds from Pearl Petroleum's US$350-million senior secured bond, the project employed more than 10,000 people and required over 6.2 million man-hours of work, making it one of Iraq's largest private energy infrastructure undertakings.

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, praised the achievement as a testament to strong cooperation with the KRG and local authorities, while Dana Gas CEO Richard Hall highlighted that assuming operational control allowed the project to be completed ahead of schedule.

The KM250 facility will also produce 7,000 barrels per day of condensate and 460 tonnes per day of LPG, supplementing existing outputs of 15,200 barrels and 1,070 tonnes respectively.

Operated by Pearl Petroleum - a consortium including Dana Gas and Crescent Petroleum (each with 35% equity), alongside OMV, MOL, and RWE (each with 10%) - Khor Mor currently supplies gas to four power plants, meeting over 80% of the Kurdistan Region's power needs and serving more than six million people.