Dana Gas Commences Supplies To Iraqi Power Station
At a Glance:
- 100 MMscf/d of natural gas supplied from Khor Mor to Kirkuk.
- One-year agreement supports power generation at Kirkuk Taza station.
- Supply expansion enabled by October 2025 completion of KM250 project.
- Total consortium investment in the Khor Mor field exceeds $4 billion.
Energy producers Dana Gas and Crescent Petroleum have commenced pipeline natural gas deliveries from the Khor Mor field in the Kurdistan Region of Iraq (KRI) to the Iraqi Ministry of Electricity in Kirkuk, the joint operators announced Tuesday.
Under a one-year agreement signed in December, the consortium will supply 100 million standard cubic feet per day (MMscf/d) to the Kirkuk Taza power station, marking a significant operational expansion into national energy markets following recent processing infrastructure upgrades.
Key Statements and Focus Area:
- Expansion into Broader Domestic Markets: Company leadership highlighted the milestone as a key outcome of recent processing infrastructure enhancements."This agreement marks a significant step as we begin to realise the benefits of our ongoing expansion programme... it lays the foundation for more cooperation on energy within Iraq’s growing market, to strengthen energy security." — Richard Hall, CEO of Dana Gas
- Regional Collaboration and Grid Support: Operators emphasized the collaborative effort required to route gas directly to the federal grid."This first delivery of gas to Iraq’s Ministry of Electricity is an important milestone for the companies in their development of gas sector in the Kurdistan Region, while also further supporting the growing electricity demand for Iraq as a whole." — Majid Jafar, CEO of Crescent Petroleum
- Sustained Investment Impact: The operators underscored the socio-economic scope of the Khor Mor developments across the country."The Khor Mor gas project provides the fuel for more than 80% of the KRI’s electricity generation, enabling affordable power for more than 8 million Iraqis... With total investment to date exceeding US$ 4.0 billion, the operations have created more than 47,000 direct and indirect jobs."
KM250 Expansion Enables Cross-Border Supply
The commencement of gas flows to Kirkuk builds on the successful commissioning of the KM250 expansion project in October 2025. The expansion increased total processing capacity at the Khor Mor facility by 50 percent, raising total output to 750 MMscf/d. This additional volume has provided joint operators Dana Gas and Crescent Petroleum the operational headroom to commercialize surplus gas via direct pipeline connections to power plants beyond the Kurdistan Region's borders.
The initial one-year supply contract with Iraq's Ministry of Electricity is aimed at boosting local power generation in Kirkuk governorate, where domestic power grids continue to face high demand. The direct transmission of gas from Khor Mor to the Kirkuk Taza plant provides a localized energy supply meant to stabilize regional grid performance and enhance generation reliability.
Strategic Role in Iraq's Broader Energy Landscape
The Khor Mor natural gas field, managed under the Pearl Petroleum consortium, comprising Dana Gas, Crescent Petroleum, OMV, MOL, and RWE, serves as the primary energy engine for northern Iraq. Currently fueling over 80 percent of the Kurdistan Region's power generation, the field's infrastructure has absorbed over $4.0 billion in capital investment to date.
The initial supply agreement to Kirkuk represents an incremental step toward integrating northern gas reserves into Iraq's wider federal electricity architecture. By utilizing domestically produced natural gas to fire power stations in neighboring governorates, the framework seeks to optimize local resources, reduce reliance on external fuel imports, and support long-term energy security across the country.
FYI
This latest supply arrangement reflects a pragmatic shift in cross-regional energy cooperation between the KRI and the federal government in Baghdad. Historically, infrastructure fragmentation and political disputes over resource management have restricted the flow of northern gas to federal power assets. However, as Iraq works to alleviate chronic electricity shortages and modernize its domestic energy grid, private sector consortiums like Pearl Petroleum are increasingly positioning expanded production capacity as a flexible resource capable of bridging regional supply deficits.
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