Dana Gas, the Middle East’s leading natural gas company, and Crescent Petroleum, the region’s oldest private upstream oil and gas firm, announced the official launch of the commercial gas sales from the KM250 gas expansion project at the Khor Mor facility in the Kurdistan Region of Iraq (KRI).

The KM250 project, delivered eight months ahead of the revised schedule, adds 250 million standard cubic feet per day (mmscf/d) of processing capacity, a 50% increase, raising total output at Khor Mor to 750 mmscf/d. This milestone is predicted to enhance Iraq’s energy security by supplying clean-burning natural gas to meet its rapidly growing electricity demand.

The added capacity will not only bolster power generation across the KRI, but also support industrial growth and improve electricity supply to other parts of Iraq.

Valued at $1.1 billion, the KM250 expansion represents one of the largest private-sector infrastructure projects in Iraq in recent years. The project received financial backing from the Bank of Sharjah and the U.S. International Development Finance Corporation (DFC), as well as proceeds from Pearl Petroleum’s $350 million senior secured bond, issued in 2024 and listed on the Nordic Alternative Bond Market.

The KM250 project will help meet rising power demand in the Kurdistan Region and Iraq, adding 7,000 billion barrels per day (bbl/d) of condensate and 460 tons per day of liquified petroleum gas (LPG) to existing output. Equipped with advanced AI systems and efficient processing technology, the facility boosts performance while reducing environmental impact. Dana Gas and Crescent Petroleum assumed operations in 2024 and, with partners like Havatec, achieved early commissioning through fast-track delivery strategies.