ERBIL, Kurdistan Region - The UAE-based Dana Gas and Crescent Petroleum have signed a series of long-term gas sales agreements to supply natural gas from the Chamchamal field in Sulaimani province to major industrial consumers in the Kurdistan Region, the companies announced on Monday.
In a joint press release, the giants said the agreements, signed through the Pearl Petroleum consortium, will supply "up to 142 million standard cubic feet per day (MMscf/d) of gas" to cement producers in the Bazian industrial area of Sulaimani province and a steel producer in Erbil for a period of 10 years.
Gas deliveries are scheduled to begin in the second half of 2027, when production from the Chamchamal's Khor Mor field is expected to commence.
According to the statement, the field is currently "under development and new pipelines are to be built by private-sector companies to supply gas to industrial users in Erbil and Bazian, including a dedicated 40-kilometer pipeline linking the Chemchemal field directly to industrial consumers in the Bazian area."
The gas sales agreements were signed with Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, and Sulaimani Cement in the Bazian industrial area in Sulaimani province, as well as Van Steel Company in Erbil.
Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said the agreements represent a major step for the region’s energy sector.
“These agreements mark a significant milestone in the development of the KRI’s energy infrastructure, delivering considerable supplies of clean burning natural gas to empower growth in the region’s industry and help displace the use of dirtier, more expensive heavy fuel oils,” Jafar said.
He added that the deal reflects “the exciting new chapter for the Pearl Petroleum consortium,” citing the completion of the KM-250 expansion project, the appraisal and development of the Chamchamal field, and other plans aimed at strengthening the Kurdistan Region’s economy and Iraq’s wider energy sector.