Dana Gas, Crescent Petroleum sign long-term gas supply deals in Kurdistan Region

ERBIL, Kurdistan Region - The UAE-based Dana Gas and Crescent Petroleum have signed a series of long-term gas sales agreements to supply natural gas from the Chamchamal field in Sulaimani province to major industrial consumers in the Kurdistan Region, the companies announced on Monday.

In a joint press release, the giants said the agreements, signed through the Pearl Petroleum consortium, will supply "up to 142 million standard cubic feet per day (MMscf/d) of gas" to cement producers in the Bazian industrial area of Sulaimani province and a steel producer in Erbil for a period of 10 years.

Gas deliveries are scheduled to begin in the second half of 2027, when production from the Chamchamal's Khor Mor field is expected to commence.

According to the statement, the field is currently "under development and new pipelines are to be built by private-sector companies to supply gas to industrial users in Erbil and Bazian, including a dedicated 40-kilometer pipeline linking the Chemchemal field directly to industrial consumers in the Bazian area."

The gas sales agreements were signed with Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, and Sulaimani Cement in the Bazian industrial area in Sulaimani province, as well as Van Steel Company in Erbil.

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said the agreements represent a major step for the region’s energy sector.

“These agreements mark a significant milestone in the development of the KRI’s 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,” Jafar said.

He added that the deal reflects “the exciting new chapter for the Pearl Petroleum consortium,” citing the completion of the KM-250 expansion project, the appraisal and development of the Chamchamal field, and other plans aimed at strengthening the Kurdistan Region’s economy and Iraq’s wider energy sector.

Richard Hall, Chief Executive Officer of Dana Gas, said the agreements would help meet the growing energy needs of the region while reducing emissions.

“By supplying competitive, lower-emission gas to the Bazian industrial corridor, we are helping replace polluting heavy fuel oil, reduce emissions and improve energy efficiency for key industries,” Hall said.

He also noted that, beyond energy supply, the agreements would support “industrial growth, local employment and long-term economic activity in the communities surrounding the Bazian corridor.”

In October 2025, Pearl Petroleum partners completed the Khor Mor gas expansion project, which added 250 MMscf/d of processing capacity and increased total gas capacity to 750 MMscf/d.

With total investment exceeding $3.5 billion, the companies said their operations have created more than 20,000 direct and indirect jobs in the region, a figure expected to rise as new projects come online.

The Khor Mor gas plant currently supplies fuel for more than 80 percent of electricity generation through the Kurdistan Regional Government's (KRG) flagship Runaki project.

Runaki - “light” in Kurdish - is the KRG’s key project, which aims to provide uninterrupted electricity to residents across the Region. Currently, nearly 4.5 million citizens across the Kurdistan Region - and over 115,000 businesses - enjoy 24-hour electricity through the project.