Dana Gas and Crescent Petroleum sign gas sales agreements

Dana Gas PJSC and Crescent Petroleum, together with their partners in the Pearl Petroleum Consortium, have signed agreements to supply natural gas from the Chemchemal field in the Kurdistan Region of Iraq (KRI) to major industrial consumers

Under the long-term gas sales agreements, cement and steel customers will collectively purchase up to 142mn standard cubic feet per day (MMscf/d) of gas for a period of 10 years, beginning in the second half of 2027 when production from the Chemchemal field, currently under development, is scheduled to commence. New pipelines are to be built by private-sector companies to supply gas to industrial users in Erbil and Bazian, including a dedicated 40-km pipeline linking the Chemchemal field directly to industrial consumers in the Bazian area.

Pearl Petroleum consortium consists of Crescent Petroleum and Dana Gas, along with European energy companies OMC. MOL and RWE. The consortium produces and develops natural gas in the KRI and is one of the largest private investors in KRI’s oil and gas sector.

The partners have committed US$160mn to drill three wells at the Chemchemal field, install an extended well test (EWT) facility, and construct associated infrastructure to support a subsequent full-field development phase to expand gas supply to additional users.

In early October 2025, Dana Gas and Crescent Petroleum completed the Khor Mor 250 (KM250) gas expansion project in the KRI, which added 250 MMscf/d of new gas processing capacity, alongside additional daily LPG and condensate output of 460 MTPD and 7,000 bbl, increasing total gas processing capacity to 750 MMscf/d, a 50% rise. The Khor Mor gas plant provides the fuel for more than 80% of the KRI’s electricity generation.

Majid Jafar, CEO of Crescent Petroleum and board managing director of Dana Gas, said,

“These agreements mark a significant milestone in the development of the KRI’s energy infrastructure, delivering considerable supplies of clean burning natural gas to empower growth in the region’s industry and help displace the use of dirtier, more expensive heavy fuel oils. The milestone underscores the exciting new chapter for the Pearl Petroleum consortium, combining the recent completion of the KM-250 expansion project in October 2025, the appraisal and development of the Chemchemal Field, and other development plans that will considerably enhance the energy sector and economy of the Kurdistan Region and the rest of Iraq.”

Richard Hall, chief executive officer, Dana Gas, added, “This agreement supports the growing energy needs of the Kurdistan Region of Iraq and strengthens the role of natural gas as a fuel source for its industrial base.”

“Beyond energy supply, this agreement supports industrial growth, local employment and long-term economic activity in the communities surrounding the Bazian corridor.”