Crescent Petroleum and Dana Gas Complete KM250 Expansion
Crescent Petroleum and Dana Gas have successfully initiated commercial gas sales from the KM250 expansion at the Khor Mor facility in Iraq’s Kurdistan Region. This significant project was completed eight months ahead of schedule, enhancing the region’s energy capacity and supporting its growing demand for electricity.
Expansion Details
The KM250 project, which represents a $1.1 billion investment, adds 250 million standard cubic feet per day (MMscf/d) of processing capacity. This increase brings Khor Mor’s total capacity to 750 MMscf/d, marking a 50% enhancement. The additional gas supply is crucial for meeting Iraq’s rising electricity needs and industrial growth, aligning with the Kurdistan Regional Government’s (KRG) objective of achieving continuous power generation.
This expansion is one of the largest private energy infrastructure projects in Iraq in recent years. It involved an impressive 6.2 million man-hours of work and utilized over 6,000 tonnes of steel. At its peak, the project employed around 10,000 workers, showcasing its scale and the economic impact on the local workforce.
Financing and Partnerships
The financing for the KM250 expansion came from several sources, including the Bank of Sharjah, the U.S. Development Finance Corporation (DFC), and proceeds from a $350 million bond issued by Pearl Petroleum on the Nordic Alternative Bond Market. Pearl Petroleum, established in 2009, is a consortium where Dana Gas and Crescent Petroleum each hold a 35% equity stake, with OMV, MOL, and RWE later joining the partnership with 10% shares each.
Currently, Pearl Petroleum is responsible for supplying natural gas to four power plants across the Kurdistan Region, fulfilling over 80% of the area’s power requirements and benefiting more than six million residents.
Operational Enhancements
The KM250 expansion will also enable the production of an additional 7,000 barrels per day of condensate and 460 tonnes per day of liquefied petroleum gas (LPG), supplementing the existing output from Khor Mor. The project incorporates advanced technologies, including AI-based monitoring systems and high-efficiency compressors, aimed at improving operational efficiency and reducing emissions.
Majid Jafar, CEO of Crescent Petroleum and Managing Director of Dana Gas, emphasized that this achievement reflects the consortium’s dedication to harnessing Iraq’s energy resources while promoting local development through cleaner energy solutions. Dana Gas CEO Richard Hall noted that direct oversight of the project was crucial in maintaining momentum and achieving early completion, which he described as a significant milestone for the company’s production and revenue outlook.
Future Plans
With the KM250 expansion now operational, Crescent Petroleum and Dana Gas are looking to further appraise and expand operations at both Khor Mor and Chemchemal to tap into additional gas reserves. Through their efforts, the consortium has been able to supply over 80% of the Kurdistan Region’s power needs while also contributing to environmental sustainability by preventing 59 million tonnes of CO₂ emissions through the transition from oil and diesel to natural gas.
The partners have also achieved carbon neutrality, reducing greenhouse gas emissions by over 20% in 2024 and lowering energy consumption by 5%.
FAQs
What is the KM250 expansion?
The KM250 expansion is a project that adds 250 MMscf/d of gas processing capacity to the Khor Mor facility, increasing its total capacity to 750 MMscf/d.
Who financed the KM250 project?
The project was financed by the Bank of Sharjah, the U.S. Development Finance Corporation, and proceeds from a bond issued by Pearl Petroleum.
How does the expansion impact the local community?
The expansion is expected to meet the growing electricity demand in the Kurdistan Region, benefiting over six million residents and supporting local economic development.
Conclusion
The successful completion of the KM250 expansion marks a significant advancement in Iraq’s energy sector, enhancing capacity and supporting local development. As Crescent Petroleum and Dana Gas look to further expand their operations, the focus remains on sustainable energy solutions that benefit both the economy and the environment.
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