Dana Gas and Crescent Petroleum sign long-term gas sales agreements to supply natural gas from the Chamchamal field

Sharjah, January 26 / WAM / Dana Gas PJSC and Crescent Petroleum, together with their partners in the Pearl Petroleum consortium, announced the signing of a series of long-term gas sales agreements, under which they will supply large quantities of low-emission natural gas from the Chamchamal field to major consumers from the industrial sector in the Kurdistan region of Iraq.

Under these agreements, 142 million standard cubic feet (MCF) per day of gas will be sold to a number of cement and iron companies for a period of ten years, and supplies will begin to flow coinciding with the start of production from the Chamchamal field in the second half of 2027.

The Chamchamal field is currently undergoing development work, with plans to establish new pipelines implemented by private sector companies in order to supply gas to industrial users in the Erbil and Bazian regions, including a dedicated 40-kilometre pipeline linking the Chamchamal field directly to industrial consumers in the Bazian region.

These agreements were signed with the companies Mas Cement, Bazian Cement, Delta Cement, Ghassin Cement, and Sulaimani Cement, all of which are located in the industrial zone in Bazian in the Sulaymaniyah Governorate, in addition to the Van Steel Company in the Erbil Governorate in the Kurdistan region of Iraq.

It is worth noting that Pearl Petroleum’s partners had announced, in early 2025, the start of work to evaluate the Cretaceous-age reservoir in the Chamchamal field and prepare the field to begin production. Based on the significant potential of the Chamchamal field, the partners have committed to investing US$160 million to drill three wells, install an extended well testing facility, and establish supporting infrastructure in preparation for the full development phase of the field in order to supply gas supplies to additional users.

Majeed Hamid Jaafar, CEO of Crescent Petroleum and Managing Director of the Board of Directors of Dana Gas, said that these agreements represent an important step in developing the infrastructure of the energy sector in the Kurdistan region of Iraq, because they will provide large supplies of clean natural gas to support the growth of the industrial sector in the region as well as replace heavy oil fuel, which is more polluting and more expensive.

With these pivotal agreements, Pearl Petroleum expands its series of new achievements that began with the completion of the Khor Mor 250 expansion project in October 2025, the existing Chamchamal field evaluation and development work, and other development plans that will greatly benefit the energy sector and the economy of the Kurdistan region and Iraq as a whole.

For his part, Richard Hall, CEO of Dana Gas, said that this agreement meets the growing demand for energy in the Kurdistan region of Iraq, and enhances the role of natural gas as a primary fuel for the industrial sector in the region, and by supplying the Bazian industrial corridor with low-cost, low-emission gas, we contribute to replacing heavy, polluting liquid fuels, and in reducing emissions and rationalizing energy consumption across major industries.

He added that the importance of this agreement is not limited to meeting energy needs, but rather supports industrial growth, opens new jobs for the community and local services, and stimulates economic activity for the communities surrounding the Bazian Corridor in the long term.

It is noteworthy that Dana Gas and Crescent Petroleum completed the Khor Mor 250 gas expansion project in the Kurdistan region of Iraq in early October 2025, eight months before the revised date.

This project added new processing capabilities amounting to 250 mqm of gas per day, with an additional daily production of liquefied petroleum gas and condensate at a rate of 460 metric tons and 7,000 barrels, bringing the total gas processing capacity at the station to 750 mqmq per day, an increase of 50%.

The Khor Mor gas station is of great regional importance as it feeds the generation of about 80% of the electricity of the Kurdistan region of Iraq, providing more than 6 million Iraqis in the region and other Iraqi governorates with clean and inexpensive energy supplies.

To date, the total investments of the Pearl Petroleum consortium have exceeded $3.5 billion, and its operations have contributed to the creation of more than 20,000 direct and indirect job opportunities in the region, and this impact is expected to greatly multiply in the coming years with increased production capacity and anticipated new projects.

• For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related