ERBIL, Kurdistan Region of Iraq – The UAE-based Dana Gas on Wednesday announced that commercial gas sales have begun from a mega expansion project in the Kurdistan Region’s key Khor Mor gas field eight months ahead of schedule, boosting capacity by 50 percent.
“Delivered eight months ahead of the revised schedule, the KM250 [project] will add 205 million standard cubic feet [of gas] per day of new processing capacity, a 50% increase, boosting Khor Mor’s total output to 750 MMscf/d,” the company said in a disclosure.
Located in Sulaimani’s Chamchamal district, Khor Mor is a major gas field in the Kurdistan Region that boasts significant economic and strategic importance. It is operated by Dana Gas, which, alongside affiliate Crescent Petroleum, agreed a deal with the Kurdistan Regional Government (KRG) in 2007 to develop the Region’s gas capacities.
“The expansion will bolster power generation and support industrial growth across the KRI, underpinning the KRG’s Runaki initiative to deliver 24-hour electricity, while improving supply to other regions of Iraq,” Dana Gas stated.
Runaki is the KRG’s landmark round-the-clock electricity initiative. Launched by Prime Minister Masrour Barzani in October of last year, it seeks to supply 24-hour electricity to the Kurdistan Region by 2026, with nearly four million residents currently enjoying the benefits of the project.
The KM250 expansion project, worth $1.1 billion, was financed by the Bank of Sharjah, Pearl Petroleum, and the US Development Finance Corporation, according to Dana Gas.
“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,” said Crescent Petroleum CEO Majid Jafar.
He thanked the KRG and local authorities for their “strong support,” saying their cooperation helped the UAE-based firm overcome challenges to complete the project.
Dana Gas CEO Richard Hall labeled the expansion project’s completion as a “huge milestone.”
“The additional capacity … supports our mission to deliver stable, cleaner energy to KRI communities, reduce diesel dependence, and advance the region’s ambition for 24-hour electrification,” Hall said.