Gas shipments from Khor Mor to Baghdad begin under ministry deal

BAGHDAD, Iraq — Dana Gas and Crescent Petroleum announced that natural gas shipments have begun from the Khor Mor field in the Kurdistan Region to Iraq's Ministry of Electricity under an agreement signed in December. Under the deal, the Khor Mor facility will supply 100 million standard cubic feet of gas per day to the Taze power plant in Kirkuk. The initial term is set at one year, with the agreement aimed at supporting electricity generation in Iraq. The shipments follow the completion in October of the "Khor Mor 250" expansion project, which raised the facility's production capacity by 50 percent to 750 million standard cubic feet per day. Majid Hamid Jaafar, chief executive of Crescent Petroleum and a board member of Dana Gas, said the first delivery marks a step in the development of the Kurdistan Region's gas sector and helps meet rising electricity demand. Dana Gas chief executive Richard Hall said the agreement reflects the results of the production expansion program. According to the companies, the Khor Mor gas project supplies more than 80 percent of the Kurdistan Region's electricity, and cumulative investment in the project has exceeded $4 billion.