Dana Gas, the Sharjah-based leading private sector natural gas company, and Crescent Petroleum, the region’s oldest private upstream oil and gas company, have started commercial gas sales from the KM250 gas expansion project (KM250) at the Khor Mor facility in the Kurdistan Region of Iraq (KRI).
KM250 will add 250 million standard cubic feet per day (MMscf/d) of new processing capacity, a 50 per cent increase, boosting 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.
Dana Gas expands Iraq gas capacity
The project has been delivered eight months ahead of the revised schedule.
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.
Among the many challenges faced by the consortium were a legal battle with main contractor Enerflex and the subsequent termination of the contract, and two drone attacks on the facility, the first of which led to fatalities.
In 2024, Dana Gas and Crescent Petroleum assumed operational control of KM250, working in collaboration with Havatec – the project’s sub-contractor – and other partners. By implementing accelerated project delivery strategies and resetting project timelines, they successfully achieved early commissioning and gas sales.
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, commented: “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, and reinforces our commitment to generating jobs, enhancing local services, and providing cleaner, more reliable energy for the region and the country.
“I am especially grateful for the strong support of the KRG and local authorities, whose cooperation helped us overcome challenges and sustain momentum throughout the project.”
The expansion will bolster power generation and support industrial growth across the KRI. It will play a key role in the government’s initiative to deliver 24-hour electricity, while improving supply to other regions of Iraq.
Richard Hall, CEO, Dana Gas, added: “Completing KM250 early is a huge milestone for Dana Gas and reflects the hands-on approach we brought to the project in the absence of the main contractor. By assuming operational oversight, Dana Gas and Crescent Petroleum were able to focus on delivery, resolve issues quickly, and restore momentum – yielding real results on the ground.
“The additional capacity strengthens our production profile and is expected to deliver substantial annual revenue for Dana Gas. It also supports our mission to deliver stable, cleaner energy to KRI communities, reduce diesel dependence and advance the region’s ambition for 24-hour electrification.”
The $1.1 billion project was backed by financing from the Bank of Sharjah, the US Development Finance Corporation (DFC), and proceeds from Pearl Petroleum’s US$350 million senior secured bond issued in 2024 and listed on Nordic Alternative Bond Market.
The KM250 facility incorporates state-of-the-art technology, including AI monitoring tools, high-efficiency compressors, and modern processes for sulphur and contaminant removal.
Follow us on
