DUBAI, UAE - Dana Gas and Crescent Petroleum have signed long-term gas sales agreements to supply up to 142 million standard cubic feet per day of natural gas to major industrial consumers in the Kurdistan Region, with deliveries set to begin in the second half of 2027.

The agreements, announced Monday, will run for 10 years and cover cement producers in the Bazian industrial area of Sulaimani province as well as a steel producer in Erbil. The gas will be supplied from the Chamchamal field, which is currently under development by the Pearl Petroleum consortium.

Dana Gas and Crescent Petroleum said the deals mark a key step in expanding gas use beyond power generation and into the industrial sector, supporting manufacturing while reducing reliance on heavy fuel oil.

“These agreements mark a significant milestone in the development of the KRI’s [Kurdistan Region of Iraq] 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,” said Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas.

Under the agreements, new pipelines will be built by private-sector companies to deliver gas to industrial users, including a 40-kilometer pipeline connecting the Chamchamal field directly to the Bazian industrial corridor. The buyers include Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, Sulaimani Cement, and Van Steel Company in Erbil.

The Pearl Petroleum partners have committed $160 million to appraise and develop the Chamchamal field, including drilling three wells, installing an extended well test facility and building enabling infrastructure ahead of full-field development.

Dana Gas CEO Richard Hall said the deal strengthens natural gas’s role in powering industry in the Kurdistan Region, adding that supplying lower-emission gas to the Bazian industrial area would improve efficiency and reduce environmental impact.

The announcement follows the completion of the Khor Mor 250 gas expansion project in October 2025, which increased processing capacity in the KRI to 750 MMscf/d. The Khor Mor plant supplies more than 80 percent of the region’s electricity, serving over 6 million people in the Kurdistan Region and Iraqi provinces.