Dana Gas, Crescent Petroleum Complete KM250 Project, Expanding Iraq’s Khor Mor Capacity by 50%
Dana Gas and Crescent Petroleum completed the KM250 expansion at Iraq’s Khor Mor field eight months early, boosting gas capacity by 50% to 750 MMscf/d and advancing the Kurdistan region’s clean power goals.
(P&GJ) — Dana Gas and Crescent Petroleum have completed the KM250 gas expansion project at the Khor Mor field in Iraq’s Kurdistan Region, increasing total gas processing capacity by 50% to 750 MMscf/d — eight months ahead of schedule.
The $1.1 billion project adds 250 MMscf/d of new gas processing capacity, enhancing power generation and industrial growth across Iraq. According to the companies, the expansion will help reduce diesel dependence and supply cleaner-burning natural gas to support 24-hour electricity under the Kurdistan Regional Government’s Runaki initiative.
Financing for the project was backed by the Bank of Sharjah, the U.S. Development Finance Corporation (DFC), and proceeds from Pearl Petroleum’s $350 million bond issue in 2024. Construction involved over 6,000 tonnes of steel and 6.2 million man-hours, employing more than 10,000 workers — one of the largest private-sector energy infrastructure builds in Iraq in recent years.
“This accomplishment highlights our ongoing dedication to the Kurdistan Region of Iraq, demonstrates our capacity to unlock its vast energy resources, and reinforces our commitment to generating jobs, enhancing local services, and providing cleaner, more reliable energy,” said Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas.
Richard Hall, CEO of Dana Gas, added that completing the KM250 expansion early was “a huge milestone,” crediting the project’s success to operational oversight and accelerated delivery strategies that restored momentum after early setbacks.
The KM250 facility also produces 7,000 bbl/d of condensate and 460 tonnes per day of LPG, supplementing existing output of 15,200 bbl/d and 1,070 t/d, respectively. It incorporates advanced automation and AI-based monitoring systems designed to boost efficiency and reduce emissions.
The gas from Khor Mor supports over 80% of the Kurdistan Region’s power needs, serving more than six million people. With KM250 now online, focus will shift toward further expansion of the Khor Mor and Chemchemal fields to unlock additional gas resources across Iraq.