Erbil: Dana Gas PJSC and Crescent Petroleum, in collaboration with their partners in the Pearl Petroleum Consortium, have announced the signing of long-term Gas Sales Agreements (GSAs) to deliver significant volumes of natural gas from the Chemchemal field to key industrial consumers in the Kurdistan Region of Iraq (KRI). The agreements cater to substantial energy requirements in the region's cement and steel sectors, with a commitment to supply up to 142 million standard cubic feet per day (MMscf/d) of gas over a decade starting from the latter half of 2027, when production at the Chemchemal field is set to begin.
According to Emirates News Agency, the Chemchemal field is currently under development, with plans for new pipelines by private-sector companies to ensure a steady gas supply to industrial users in Erbil and Bazian. This includes a dedicated 40-kilometre pipeline directly connecting the Chemchemal field to industrial consumers in the Bazian area. The GSAs have been signed with several leading cement companies, including Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, and Sulaimani Cement, all located in the Bazian industrial area of Sulaymaniyah province, as well as with Van Steel Company in Erbil governorate.
In early 2025, the partners of Pearl Petroleum initiated activities to appraise the Chemchemal Cretaceous reservoir and start production from the field. They have committed US$160 million to drill three wells, install an extended well test (EWT) facility, and build associated infrastructure to support a full-field development phase. This expansion aims to broaden gas supply to more users.
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, emphasized that these agreements are a significant step forward in evolving the KRI's energy infrastructure. He noted that the agreements would provide clean-burning natural gas to drive industrial growth and replace heavy fuel oils.
The Pearl Petroleum consortium is embarking on an exciting new chapter, marked by the recent completion of the KM-250 expansion project in October 2025, the development of the Chemchemal Field, and other future projects that are expected to significantly boost the energy sector and economy of the Kurdistan Region and Iraq.
Richard Hall, Chief Executive Officer of Dana Gas, remarked that the agreement is pivotal in meeting the Kurdistan Region's growing energy needs and reinforces natural gas as a vital fuel source for its industrial base. The provision of competitive, lower-emission gas to the Bazian industrial corridor aims to replace polluting heavy fuel oil, reduce emissions, and enhance energy efficiency in key industries.
In October 2025, Dana Gas and Crescent Petroleum completed the Khor Mor 250 (KM250) gas expansion project in the KRI, eight months ahead of the revised schedule. This project added 250 MMscf/d of new gas processing capacity, alongside additional daily LPG and condensate output, boosting total gas processing capacity to 750 MMscf/d, a 50 percent increase.
The Khor Mor gas plant supports over 80 percent of the KRI's electricity generation, providing affordable power to more than 6 million Iraqis. With total investments exceeding US$3.5 billion, the operations have created over 20,000 direct and indirect jobs in the region, a number expected to grow with increased capacity and new projects.
