Danah Gas, a regional natural gas company, along with Oil of the Crescent and their partners in Pearl Petroleum consortium, have finalized a number of long-term agreements aimed at selling gas. These agreements will facilitate the supply of significant volumes of low-emission natural gas from the Jamgamal field to major consumers in the industrial sector within the Kurdistan region of Iraq. Under these contracts, 142 million standard cubic feet (MMSCF) of gas will be sold daily to several cement and iron manufacturing companies over a span of ten years.
The gas supplies are expected to commence concurrently with the start of production at the Jamgamal field in the latter half of 2027. Currently, the field is undergoing development, which includes plans for new pipeline infrastructures being implemented by private sector companies to deliver gas to industrial users in the Erbil and Bazian areas. Among these, a dedicated 40-kilometer pipeline will directly connect the Jamgamal field to industrial consumers in the Bazian region.
Agreements have been secured with several cement companies located in the Bazian industrial zone in the Sulaymaniyah governorate, as well as with Van Steel company in the Erbil province of the Kurdistan region.
Significant Advancement
Majid Hamid Jafar, CEO of Oil of the Crescent and Managing Director of Danah Gas, stated, “These agreements represent a pivotal step in advancing the energy sector’s infrastructure in the Kurdistan region of Iraq, as they will provide substantial supplies of clean natural gas to bolster the industrial sector’s growth and replace heavy fuel oil. With these key agreements, Pearl Petroleum is expanding its portfolio of achievements that began with the completion of the Khor Mor expansion project in October 2025, alongside ongoing assessment and development work at the Jamgamal field, and other development plans that promise significant benefits for the energy sector and the economy of both the Kurdistan region and Iraq as a whole.”
Richard Hall, CEO of Danah Gas, added, “These agreements meet the increasing energy demand in the Kurdistan region of Iraq and enhance the role of natural gas as a fundamental fuel for the industrial sector. Moreover, their significance extends beyond merely satisfying energy requirements; they also promote industrial growth, create new jobs for local communities, and stimulate economic activity for communities surrounding the Bazian corridor for the long term.”
It is important to note that Pearl Petroleum partners announced in early 2025 that they would begin evaluating the Cretaceous formation at the Jamgamal field and preparing it for production. Given the substantial potential of the Jamgamal field, the partners have committed to an investment of $160 million to drill three wells, install an extended well testing facility, and develop supporting infrastructure in preparation for the field’s full development to supply gas to additional users.