Iraq’s Chemchemal gas field will start supplying industrial clients in the Kurdistan Region in the second half of 2027. Consequently, the Chemchemal Gas Supply will significantly support local industry and energy security.
Pearl Petroleum, which includes Dana Gas and Crescent Petroleum, signed long-term contracts with cement and steel companies. Therefore, these agreements will provide up to 142 million standard cubic feet per day over a ten-year period.
The buyers include Mass Cement, Bazian Cement, Delta Cement, Gasin Cement, and Sulaimani Cement in Sulaymaniyah, as well as Van Steel Company in Erbil. As a result, industrial operations will receive a reliable fuel supply.
Pearl Petroleum is drilling three wells at Chemchemal and constructing an extended well test facility. Moreover, the project includes new pipelines to deliver gas to clients in Erbil and Bazian.
A dedicated 40-kilometer pipeline will connect the field to key industrial areas. This improvement will enhance distribution efficiency and reduce potential delays in fuel supply.
The project follows the October 2025 expansion of the Khor Mor gas plant. Consequently, the plant’s capacity rose from 250 MMscf/d to 750 MMscf/d. Khor Mor now powers over six million people and supplies more than 80 percent of electricity in the Kurdistan Region.
Pearl Petroleum has invested over 3.5 billion dollars in the region. In addition, operations support more than 20,000 direct and indirect jobs, boosting the local economy.
Crescent Petroleum was founded by Iraqi-Emirati businessman Hamid Jafar, whose father, Dhia Jafar, served as Iraq’s minister of transport, economy, and finance in the 1940s and 50s. Later, Crescent formed Dana Gas, the Middle East’s first publicly traded private-sector natural gas company.
Dana Gas now operates in Egypt, Iraq’s Kurdistan Region, and the UAE. Meanwhile, Crescent Petroleum remains one of the oldest private oil and gas producers in the Middle East.
Experts note that the Chemchemal Gas Supply will strengthen industrial operations, improve energy security, and promote regional economic diversification. Furthermore, it supports long-term industrial growth.
Officials confirmed that construction and pipeline development will continue over the next two years. They expect to begin commercial gas flows to industrial clients by mid-2027.
Finally, the project is likely to attract additional investment in energy infrastructure. It will also strengthen collaboration between private energy companies and local industries in northern Iraq.
The Chemchemal Gas Supply project marks a major milestone for Pearl Petroleum, Dana Gas, and Crescent Petroleum, demonstrating their commitment to industrial development and regional energy reliability.
