(WO) – Dana Gas and Crescent Petroleum, together with partners in the Pearl Petroleum consortium, have signed a series of long-term gas sales agreements to supply industrial customers in the Kurdistan Region of Iraq, marking a key step toward commercial development of the Chemchemal gas field.
Image: Pearl Petroleum
Under the agreements, up to 142 MMscf/d of natural gas will be delivered to cement and steel producers in the Bazian industrial area and Erbil governorate for a 10-year period. Gas deliveries are scheduled to begin in the second half of 2027, in line with the expected start-up of production from the Chemchemal field.
The field, located in the Kurdistan Region of Iraq, is currently under appraisal and early development. Pearl Petroleum is advancing the project through a $160-million program that includes drilling three wells, installing an extended well test facility, and constructing associated infrastructure to support future full-field development. New privately funded pipelines will be built to connect the field to industrial consumers, including a dedicated 40-km pipeline to the Bazian area.
The gas sales agreements were signed with multiple cement producers in Sulaymaniyah province, as well as a steel manufacturer in Erbil. The offtake arrangements provide a defined commercial outlet for Chemchemal gas and support continued investment in appraisal and development activities.
According to the partners, the project is intended to supply lower-emission natural gas to industrial users currently reliant on heavy fuel oil, while strengthening the region’s domestic gas supply chain. Chemchemal represents the next phase of growth for Pearl Petroleum following the completion of the Khor Mor 250 expansion project in October 2025, which increased total gas processing capacity in the region to 750 MMscf/d.
With appraisal and early production work underway, the Chemchemal field is positioned as a potential new source of industrial gas supply in northern Iraq, subject to successful execution of the development program and infrastructure buildout.
