Crescent Petroleum, Dana Gas boost Khor Mor gas capacity by 50%

Sharjah 24: Crescent Petroleum and the Sharjah-based Dana Gas PJSC today announced the start of commercial gas sales from the KM250 gas expansion project (KM250) at the Khor Mor facility in the Kurdistan Region of Iraq (KRI).

250 MMscf/d expansion completed ahead of schedule

Delivered eight months ahead of the revised schedule, the KM250 will add 250 million standard cubic feet per day (MMscf/d) of new processing capacity—representing a 50% increase. This expansion boosts Khor Mor’s total output to 750 MMscf/d.

Supporting Iraq’s power and industrial growth

The additional capacity will help meet Iraq’s rapidly growing power demand by delivering significant new volumes of clean-burning natural gas. The expansion is set to enhance power generation, support industrial development across the KRI, and contribute to the KRG’s Runaki initiative to ensure 24-hour electricity access—while also improving supply to other Iraqi regions.

$1.1 billion project with global backing

The $1.1 billion project was financed through a combination of support from the Bank of Sharjah, the US Development Finance Corporation (DFC), and proceeds from Pearl Petroleum’s $350 million senior secured bond issued in 2024 and listed on the Nordic Alternative Bond Market.

Massive infrastructure effort

At its peak, the project employed over 10,000 workers and involved the delivery of more than 6,000 tonnes of steel and 6.2 million man-hours—making it one of the largest private-sector infrastructure projects in Iraq in recent years.

Leadership remarks on early completion

Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, stated: “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 and demonstrates our capacity to unlock its vast energy resources.”

Richard Hall, CEO of Dana Gas, added: “Completing KM250 early is a huge milestone for Dana Gas.” He noted that the new capacity enhances the company’s production profile and is expected to deliver substantial annual revenue.

Output boost: Condensates and LPG

In addition to natural gas, KM250 will produce 7,000 barrels per day (bbl/d) of condensate and 460 tonnes per day (t/d) of LPG. These volumes supplement existing output levels of 15,200 bbl/d and 1,070 t/d, respectively.

High-tech facility with environmental focus

The KM250 facility features state-of-the-art technology, including AI monitoring tools, high-efficiency compressors, and advanced systems for sulphur and contaminant removal. These upgrades improve operational efficiency while reducing environmental impact.

Next phase: Further expansion and appraisal

With KM250 operational, Pearl Petroleum will now focus on the next phase: further appraisal and expansion of the Khor Mor field and ongoing progress at the Chemchemal site to unlock additional gas reserves.

Pearl Petroleum: Powering the KRI

Established in 2009, Pearl Petroleum is a consortium led by Dana Gas and Crescent Petroleum (each holding 35% equity), with OMV, MOL, and RWE each holding 10%. Today, the consortium supplies gas to four power plants across the Kurdistan Region, meeting over 80% of its power needs and serving more than six million people.

Commitment to carbon neutrality

Pearl Petroleum remains committed to environmental responsibility. In 2024, it reduced total greenhouse gas (GHG) emissions by over 20% to 200 kTCO₂e and cut overall energy consumption by 5%. This brought its carbon intensity down to 4.4 kg CO₂/boe—among the lowest in the industry. Remaining emissions were offset, ensuring full carbon neutrality.