Dana Gas has halted all main production facilities at Iraq’s Khor Mor field over credible security threats, cutting a supply that meets more than 80% of the Kurdistan Region’s electricity needs. The shutdown could strip up to 3,000 megawatts of generation capacity, leaving power in the area limited to a few hours a day.
The United Arab Emirates’ Dana Gas has suspended operations at all main production facilities in the Khor Mor gas field, citing credible security threats amid an increasingly volatile regional situation. The operator took the decision in coordination with the Kurdistan Regional Government, Sulaymaniyah authorities, and the Iraqi federal government to safeguard personnel and infrastructure.
The field has faced repeated attacks before, including rocket and drone strikes from armed groups that triggered production halts and widespread blackouts.
A grid that runs on one field
Located in the Kurdistan Region of Iraq, Khor Mor supplies more than 80% of the region’s electricity generation needs. Cutting off gas deliveries to power stations is expected to reduce generation capacity by up to 3,000 megawatts, restricting power in the area to just a few hours a day.
Dana Gas has reassured customers and stakeholders that the plant stays ready to restart quickly once conditions improve. That leaves the outage tied directly to how the security situation unfolds.
The stakes beyond Kurdistan
Khor Mor holds an estimated 8.2 trillion cubic feet of natural gas, making it the largest producing non-associated gas field in Iraq. It is run by Pearl Petroleum, a consortium in which Dana Gas and Crescent Petroleum each hold a 35% stake, with the remaining 30% split equally among Austria’s OMV AG, Hungary’s MOL Group and DNO.
A $1.1 billion expansion known as KM250 lifted production capacity by 50% to 750 million standard cubic feet per day. Surplus natural gas from the field is earmarked for federal power plants elsewhere in Iraq, helping Baghdad ease its power deficits and cut its reliance on imported Iranian gas.
Source: OilPrice.com
Trading involves risk.
Risk Disclaimer
