Dana Gas and Crescent Petroleum have commenced commercial gas sales from the KM250 expansion project at the Khor Mor facility in the Kurdistan Region of Iraq (KRI).
The project, completed eight months ahead of schedule, adds 250 million cubic feet per day (mcf/d) of processing capacity, increasing Khor Mor’s output to 750mcf/d.
This expansion aims to address Iraq’s growing power demand by providing additional volumes of natural gas.
The project is also expected to support power generation and industrial growth across the KRI, in line with the Kurdistan Regional Government’s Runaki initiative.
The $1.1bn (ID1.44tn) project received financial backing from the Bank of Sharjah and the US Development Finance Corporation.
It is also supported by the proceeds from Pearl Petroleum’s $350m senior secured bond issued last year.
Pearl Petroleum, established in 2009 as a consortium with Dana Gas and Crescent Petroleum as joint operators, supplies natural gas to four power plants in the KRI.
The KM250 project employed over 10,000 workers and delivered more than 6,000 tonnes (t) of steel and 6.2 million man-hours during peak construction.
Dana Gas CEO Richard Hall said: “Completing KM250 early is a huge milestone for Dana Gas and reflects the hands-on approach we brought to the project in the absence of the main contractor.
“By assuming operational oversight, Dana Gas and Crescent Petroleum were able to focus delivery, resolve issues quickly and restore momentum – yielding real results on the ground.
“The additional capacity strengthens our production profile and is expected to deliver substantial annual revenue for Dana Gas.
“It also supports our mission to deliver stable, cleaner energy to KRI communities, reduce diesel dependence and advance the region’s ambition for 24-hour electrification.”
The KM250 plant will also produce 7,000 barrels per day of condensate and 460t per day of liquefied petroleum gas (LPG), supplementing existing outputs.
The facility features advanced technology including AI monitoring tools, high-efficiency compressors, and processes for contaminant removal aimed at minimising environmental impact.
Last year, Dana Gas and Crescent Petroleum took operational control of KM250, collaborating with Havatec, the project's subcontractor, and other partners.
Looking ahead, the partners will focus on further appraisal and expansion of the Khor Mor field, and continue their efforts at Chemchemal to unlock additional gas resources for Iraq.
Crescent Petroleum CEO and Dana Gas board managing director Majid Jafar said: “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, demonstrates our capacity to unlock its vast energy resources, and reinforces our commitment to generating jobs, enhancing local services, and providing cleaner, more reliable energy for the region and the country."
Last month, Iraq resumed oil exports from its semi-autonomous Kurdistan region to Türkiye after more than two-and-a-half years.
The restart follows an interim agreement between Iraq’s Federal Government, KRG and foreign oil producers operating in the region.
