ERBIL, Kurdistan Region of Iraq - The UAE-based Dana Gas has reduced gas supplies to power stations in the Kurdistan Region, decreasing electricity production by 1,000 megawatts, the Region's electricity ministry said Wednesday.

“The Dana Gas company has reduced the amount of gas it supplies to power generation stations, and as a result, electricity production has decreased by 1,000 megawatts,” the electricity ministry said.

Dana Gas operates the key Khor Mor field, which is the largest supplier of electricity in the Kurdistan Region, with natural gas reserves of around 1.8 trillion cubic feet.

“The Ministry of Electricity and the Ministry of Natural Resources are in contact with the aforementioned company to resolve the issue and restore normal gas supply and electricity production,” the ministry added.

In early August, the Kurdistan Regional Government (KRG) accused Dana Gas and its affiliate Crescent Petroleum of violating their contractual obligations with Erbil, saying the companies had supplied the Iraqi electricity ministry with natural gas from Sulaimani’s Khor Mor field without consent.

Dana Gas and Crescent Petroleum struck a deal with the KRG in 2007 to develop the Kurdistan Region’s gas capacities.

According to Dana Gas, the company has invested over $3.5 billion in the Kurdistan Region and directly and indirectly created more than 20,000 local job opportunities.

The UAE-based energy giant struggling with the regional consequences of the US-Israeli war on Iran, with the targeting of the Khor Mor field having negatively impacted operations and disrupted power supplies.

While Iraq and the Kurdistan Region have long suffered from electricity and power shortages, Erbil has made strides to address the issue with the landmark Runaki Project, which currently provides round-the-clock electricity to the Kurdistan Region.

The KRG has repeatedly expressed its willingness to share its experience with Baghdad in addressing its long-standing electricity crisis.