Major long-term gas supply agreements have been signed to deliver natural gas from the Chemchemal field to large industrial users in the Kurdistan Region of Iraq.
The deals were announced by Dana Gas and Crescent Petroleum, along with their partners in the Pearl Petroleum Consortium. Under the agreements, up to 142 million standard cubic feet of gas per day will be supplied to cement and steel factories for 10 years, starting in the second half of 2027, when production from the Chemchemal field is expected to begin.
The gas will be delivered to factories in Erbil and Bazian through new private-sector pipelines. This includes a 40-kilometre dedicated pipeline that will directly connect the Chemchemal field to the Bazian industrial zone.
The gas will be supplied to the following industrial companies:
- Mass Cement
- Bazian Cement
- Delta Cement
- Gasin Cement
- Sulaimani Cement
- Van Steel Company
Most of the cement plants are based in the Bazian industrial area in Sulaymaniyah province, while Van Steel Company operates in Erbil.
Earlier in 2025, the Pearl Petroleum partners began appraisal work on the Chemchemal Cretaceous reservoir. The consortium has committed $160 million to drill three wells, install testing facilities, and build the infrastructure needed for future full-scale development.
The Chemchemal project follows the successful completion of the Khor Mor 250 gas expansion in October 2025. That project added 250 million cubic feet per day of processing capacity, bringing total capacity to 750 MMscf/d. Today, the Khor Mor plant supplies more than 80% of the Kurdistan Region’s electricity, with total investment in the project exceeding $3.5 billion.
These new gas agreements are expected to support industrial growth, reduce fuel costs, and strengthen energy security across the Kurdistan Region.
