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Posted By OrePulse
Published: 05 Aug, 2026 16:44

Iraq cuts dependence on Iran as Dana Gas starts Khor Mor supply

By: AGBI

Dana Gas has begun supplying natural gas from its Khor Mor field in Iraq’s Kurdistan region to a local power plant, reducing the country’s dependence on gas imports from Iran.

Abu Dhabi-listed Dana Gas and Crescent Petroleum, joint operators of the Kurdistan Gas Project, signed a deal with Iraq’s power ministry last December to supply 100 million standard cubic feet per day of gas to the Kirkuk Taza power station for at least a year.

The Khor Mor field will provide fuel for around 80 percent of the Kurdistan region’s electricity generation, enabling affordable power for more than 8 million residents, Dana Gas said in a statement.

Completion of the KM250 expansion in Khor Mor, commissioned in October 2025, has increased production capacity by 50 percent to 750 million standard cubic feet per day.

According to the US Energy Information Administration, Iraq’s natural gas imports from Iran account for more than 30 percent of electricity generation.

In August 2025, Iraq approved plans to build power plants able to generate more than 10,000 megawatts to phase out its reliance on gas imports from Iran.

Mohammed Al Sudani, Iraq’s prime minister at the time, said in February 2025 that Baghdad would be able to halt gas supplies from Tehran by 2028.

Iran, which controls the world’s second-largest proven gas deposits, had supplied Iraq with nearly 50 million cubic metres of gas per day under a contract signed in 2017.

Dana Gas has invested more than $4 billion in projects across Iraq.

The company’s shares closed 1 percent higher at AED0.87 on Tuesday. The stock is up more than 1 percent in the year to date.

Crescent Petroleum owns 20 percent of Dana Gas.

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