Dana Gas, the Middle East’s leading publicly listed regional natural gas company, and Crescent Petroleum, the oldest private oil & gas company in the Middle East, alongside their partners in the Pearl Petroleum Consortium, have signed a series of long-term gas sales agreements (GSAs) to supply natural gas from the Chemchemal field to major industrial consumers in the Kurdistan Region of Iraq (KRI).

The 10-year agreements cover the sale of up to 142 million standard cubic feet per day (mmscf/d) to cement and steel producers. Deliveries are scheduled to commence in the second half of 2027, coinciding with the expected start of production from the Chemchemal field.

Key customers include Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, and Sulaimani Cement in Sulaymaniyah province, as well as Van Steel Company in Erbil governorate.

The Chemchemal field is currently under strategic development, with private-sector companies slated to construct new pipeline networks to transport gas to industrial hubs in Erbil and Bazian. This infrastructure includes a dedicated 40-kilometer pipeline linking the field directly to the Bazian industrial corridor to replace high-cost heavy fuel oils with cleaner-burning natural gas.

In early 2025, the Pearl Petroleum partners announced the start of appraisal activities at the Chemchemal Cretaceous reservoir and plans to initiate production. The consortium has committed $160 million to drill three wells, install an extended well test facility, and develop associated infrastructure, supporting a future full-field development phase aimed at expanding gas supply to additional users.

The Chemchemal field is a large, undeveloped natural gas discovery. It contains substantial gas resources within multiple reservoirs, including the Cretaceous formation, and is considered one of the region’s most strategic gas developments.

The field is being developed to supply clean-burning natural gas to local power generation and industrial users, supporting fuel substitution, energy security, and economic growth in the KRI.

Notably, a Long-Term Gas Sales Agreement (GSA) is a binding contract between a gas producer and a buyer that establishes the terms for the sale and delivery of natural gas over an extended period, typically ranging from 10 to 30 years.