Dana Gas and Crescent Petroleum Sign Gas Supply Deal for Kurdistan Factories
Dana Gas and Crescent Petroleum have signed long-term agreements to supply natural gas to cement and steel factories in the Kurdistan Region of Iraq (KRI). Under the deal, the companies will provide up to 142 million standard cubic feet of gas per day (MMscf/d) to industrial customers.
The gas supply will last for 10 years, starting in the second half of 2027. Gas production will come from the Chemchemal gas field, which is expected to begin operations at that time, according to a company statement released on Monday.
The Chemchemal field is currently being developed. As part of the project, new gas pipelines will be built by private companies to deliver gas to factories in Erbil and Bazian. One key project is a 40-kilometer dedicated pipeline that will directly connect the Chemchemal field to factories in the Bazian industrial area.
The gas sales agreements were signed with several cement companies located in the Bazian industrial zone of Sulaymaniyah province. These include Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, and Sulaimani Cement. In addition, gas will also be supplied to Van Steel Company in Erbil governorate.
In early 2025, the Pearl Petroleum partners, which include Dana Gas and Crescent Petroleum, announced the start of further evaluation work at the Chemchemal field. They also confirmed plans to begin gas production from the site.
To support this development, the partners have committed $160 million in investment. This funding will be used to drill three gas wells, install a testing facility, and build the required infrastructure. These steps will help prepare the field for a future expansion that aims to supply gas to more customers across the region.
Richard Hall, CEO of Dana Gas, said the agreement will help meet the growing energy needs of the Kurdistan Region. He explained that using natural gas will support local industries and reduce reliance on heavy fuel oil, which is more polluting. Supplying cleaner gas will help lower emissions and improve energy efficiency in important industrial areas such as Bazian.
Hall also said that the project will support industrial growth, create local jobs, and encourage long-term economic development in communities near the Bazian industrial corridor.
Dana Gas and Crescent Petroleum are already active in Kurdistan’s energy sector. In October 2025, the companies completed the Khor Mor 250 (KM250) gas expansion project. This project added 250 MMscf/d of new gas processing capacity and increased total capacity to 750 MMscf/d, a 50% increase.
The Khor Mor gas plant supplies fuel for over 80% of Kurdistan’s electricity generation, providing power to more than six million people in the Kurdistan Region and other parts of Iraq.
So far, total investment in the Khor Mor project has exceeded $3.5 billion and has created more than 20,000 direct and indirect jobs in the region.
Published: 27th January 2026
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