The Kurdistan Region has secured a major gas supply for its key industries. Energy firms Dana Gas and Crescent Petroleum signed new agreements. These deals will provide long-term natural gas to industrial consumers. The contracts promise a major gas supply for at least ten years. This marks a significant step for the region’s economic infrastructure.
The Pearl Petroleum consortium will facilitate the major gas supply. It plans to deliver up to 142 million cubic feet daily. Therefore, this gas will come from the Chamchamal field in Sulaimani province. The fuel will power cement plants in the Bazian industrial area. A steel producer in Erbil will also receive this vital resource. Gas deliveries should officially begin in late 2027.
New pipeline construction will enable this energy transfer. Companies will build a dedicated 40-kilometer pipeline first. Moreover, this line will connect the Chamchamal field directly to Bazian. Additional pipelines will also serve industrial users in Erbil. These projects represent substantial private-sector investment.
Industry leaders celebrated the agreement’s broader importance. Crescent Petroleum’s CEO Majid Jafar called it a major milestone. However, he said clean gas will replace dirtier, more expensive fuels. This shift will empower industrial growth across the region. It also begins a new chapter for the consortium’s operations.
Dana Gas CEO Richard Hall highlighted environmental benefits. Supplying competitive lower-emission gas will reduce pollution. This move will displace heavy fuel oil in industrial processes. Consequently, energy efficiency will improve for key manufacturers. The agreements also promise substantial socio-economic benefits.
These deals will support industrial growth and local employment. They will stimulate long-term economic activity in nearby communities. The broader Khor Mor expansion project underpins this supply. Partners completed a major capacity increase last October. Total gas processing capacity now reaches 750 million cubic feet daily.
Cumulative investment in the region now exceeds 3.5 billion dollars. Operations have created over 20,000 direct and indirect jobs. This figure will likely grow as new projects start. The gas already fuels most regional electricity generation. It powers the KRG’s flagship Runaki project for reliable electricity.
Nearly 4.5 million citizens now enjoy 24-hour electricity. Over 115,000 businesses also benefit from this consistent power. The new industrial gas deals will further strengthen the regional economy. They ensure a cleaner, more reliable energy future for Kurdistan. This strategic move enhances both energy security and industrial competitiveness.
