A major expansion project at Khor Mor, known as KM250, is expected to drastically increase the production of gas from the field by an additional 250 million standard cubic feet of gas per day (mmscf/d), significantly boosting the Kurdistan Region’s electricity generation capabilities.
“Development of the KM-250 project, which promises to boost capacity by a further 50%, has accelerated the expected completion to Q1 2026. Progress on the US$1 billion expansion project … has advanced in recent months through fast-track simultaneous project construction and commissioning activities,” Dana Gas said in a disclosure on the Abu Dhabi Securities Exchange (ADX).
Crescent Petroleum and its affiliate, Dana Gas, struck a deal with the Kurdistan Regional Government (KRG) in 2007 to develop the Region’s substantial gas resources. They also agreed to establish Kurdistan Gas City, a major new gas-utilization industrial complex to promote private sector investment.
In the disclosure, Dana Gas revealed that production from Khor Mor reached 525 mmscf/d per day in early March, “a growth of 75% since 2017, in addition to 15,200 b/d of condensate and 1,070 t/d of LPG.”
“The Khor Mor plant operated by the companies provides the fuel for around 75% of the KRI’s electricity generation, enabling affordable power for more than 6 million Iraqis in the KRI and other governorates of Iraq. With total investment to date exceeding US$3.5 billion, the operations have created more than 20,000 direct and indirect jobs in the region,” it stated.
The KM250 expansion project is supported by a seven-year, $250 million financing agreement between Dana Gas and the US International Development Finance Cooperation.
““We are at the start of an exciting new chapter for Pearl Petroleum with the imminent completion of the KM-250 expansion project,” said Crescent Petroleum CEO Majid Jafar. “This work will further enhance the energy sector and economy of the Kurdistan Region and all of Iraq.”
Dana Gas CEO Richard Hall said that the KM250 expansion “will transform our business, enabling the next major phase of expansion.”
Located in Sulaimani’s Chamchamal district, Khor Mor frequently comes under attack, reportedly by Iran-affiliated Iraqi militias taking advantage of its strategic and economic importance for the Kurdistan Region, leading to major power disruptions across the Region and hindering expansion projects at the site.
A drone targeted the field in February but did not cause material damage or casualties. Sulaimani-based Kurdish counterterrorism forces blamed “militia groups and outlaws” for the attack.
In April of last year, a drone strike at the site killed four Yemeni nationals and injured several others who were repairing damage from a previous attack. The strike caused Dana Gas to suspend production temporarily.
Dana Gas has also warned that attacks on Khor Mor directly impact the lives of the Kurdistan Region’s citizens.