Khor Mor gas field production to double, surplus gas can be exported: Dana Gas CEO

ERBIL, Kurdistan Region — Over two hundred million cubic feet of gas per day could be sold by Dana Gas, a main operator of Khor Mor field in the Kurdistan Region, to Turkey or Iraq, the company’s CEO told Rudaw in an exclusive interview.

Pearl Petroleum Consortium, made up primarily of the United Arab Emirates-based Dana Gas and Crescent Petroleum, is currently producing 400 million cubic feet per day (mmscfd) of gas in Kurdistan Region’s Khor Mor field, Produced gas is used entirely for power plants in the Kurdistan Region.

Pearl Petroleum signed a Gas Sales Agreement (GSA) with the KRG in February 2019 to more than double production levels to 900 mmscfd, which would not only fulfill local demand but also allow for export of gas to Iraq or neighboring countries.

Completion of new production facilities at the Khor Mor gas field mean the increase in production can now be made, Dana Gas CEO Dr. Patrick Allman-Ward told Rudaw on the sidelines of the 24th World Energy Congress in Abu Dhabi.

“The additional 250 mmscfd that we have signed the GSA for with Ministry of Natural Resources will produce 650 mmscfd. That is destined entirely for power generation. The second train of 250 mmscfd, Pearl has the right to market that gas independently. We are looking at different potential markets for that gas.”

“One of those potential markets is to supply, in addition the remaining incremental need for gas in Kurdistan Region. Our understanding is that, although there is installed generative capacity to take 900 mmscfd in the Kurdistan Region, there is not currently need for electricity demand that would be generated with consumption of that gas.”

“The 250 mmscfd that Pearl has the right to market, it could potentially be used for exports,” Allman-Ward asserted.

“We are interested in the idea of exporting gas, particularly the second train of 250 mmscfd. We think it is important to prove concept of gas export from the Kurdistan Region to the other places. Particularly of interest to us is Turkey. Turkey has huge gas demand,” added the Dana Gas CEO.

“We think that Turks should be interested in gas, large resources of gas that lie exactly right next door in a friendly country that could supply in the initial phases some gas, but has the potential going forward to supply very substantial portion of Turkey’s total gas demand.”

Allman-Ward adds prices of gas from Khor Mor, a field onshore and close to Turkey, make it “competitively” placed for gas sale.

Beyond Khor Mor, Dana Gas have run successful tests on the nearby Chamchamal field.

“We are not at the moment developing the Chamchamal field. Having said that … we have now confirmed the presence of very significant gas resources in the Chamchamal field as well,” said Allman-Ward.

They are now discussing the start of production at Chamchamal with the Ministry of Natural Resources of the Kurdistan Region through an “early production facility.”

When asked if Chamchamal had the potential to match the reservoir and the potential of Khor Mor, Allman-Ward said “absolutely.”

Dana Gas have been operating in Khor Mor since 2007, and first extracted gas from the field in 2009. The field is believed to house 75 trillion cubic feet of gas.