ERBIL, Kurdistan - UAE-based Dana Gas on Friday said it is committed to resuming a natural gas expansion project in the Kurdistan Region following the termination of a contract with a major supplier.
In a report detailing its financial results for the first nine months of this year, Dana Gas said that it and its consortium Pearl Petroleum “are fully committed to safely and efficiently resuming the KM250 project,” referring to an expansion of Khor Mor field in Sulaimani’s Chamchamal district that aims to increase gas production by 250 million standard cubic feet of gas per day in under two years.
“Looking ahead, we are working diligently towards resuming full construction activities on our KM250 project, and our focus remains firmly on delivering the first commercial gas by Q2 2026,” said Dana Gas CEO Richard Hall.
In September, Dana Gas began legal proceedings against Enerflex, a gas industry supplier, over performance issues it claimed led to delays at the KM250 project.
In response, Enerflex accused Dana Gas of wrongfully terminating their contract and blamed security concerns at the site that forced them to suspend operations. It said that Dana Gas made “a wrongful attempt … to circumvent Enerflex’s contractual rights to suspend performance while the project site remains unsafe.”
After terminating the contract with Enerflex, Pearl Petroleum has taken over direct control and construction will begin “imminently,” Dana Gas said on Friday.
The Khor Mor gas field produces over 500 million standard cubic feet of gas per day, according to Dana Gas. The field serves as the primary gas supplier for the Kurdistan Region's power plants.
In its earnings report, Dana Gas said it generated a net profit of $112 million in the first nine months of this year, down from $126 million in the same period the year before. It attributed the drop to “lower realized prices and production decline in Egypt.”
The company said its continued focus on driving cost and production optimization, mainly in the Kurdistan Region, minimized “the financial impact of these challenges.”
Its overall production between January and September declined by eight percent compared to the same period last year, but its production in the Kurdistan Region increased by three percent.
