Iraq’s Khor Mor gas expansion project (KM250) is unaffected by the recent attacks and is on schedule for April 2023 completion, a senior official at Crescent-Dana Gas, the joint operators for the Khor Mor and Chemchemal gas fields reaffirmed.

Mohammad Makkawi, Managing Director, Kurdistan Operations said the rockets fell on open ground and there has been no damage or injuries.

“It is business as usual…The security forces have identified the party behind it and are in communication with the authorities to stop these childish acts. The operations never stopped.”

Last month (27 June), Zawya had reported that Dana Gas had suspended Khor Mor expansion after rocket attacks.

Speaking at a virtual event organised by Columbia University’s climate school on unlocking natural gas in the Iraq Kurdistan Region, Makkawi noted that despite differences, Bagdad and Erbil have always found ways to keep things moving.

The $600 million KM250 expansion project aims to increase the production capacity at the Khor Mor gas field from 450 million standard cubic feet per day (scf/d) to 700 scf/d.

Makkawi said the company has plans for two other projects that will up the production capacity from 700 million to 1050 million scf/d.

“The second train for 250 million scf/d will start immediately after the first, assuming we get the financing, and we would also have another production project at Chemchemal. We believe that in two and a half years, we will be in a position to meet the gas demand of the whole Kurdistan region of Iraq and will look to exporting either gas or electricity to the rest of Iraq.”

The field currently supplies 75 percent of KRG’s power generation requirements.

Pipeline privatisation on cards

Makkawi said the KRG wants to restructure the ownership and the operatorship of the Common User Pipeline (CUP) and bring in private sector participation.

“We are waiting to hear the details from the government. We don't think this will impact the schedule of the pipeline but only the corporate structure by reducing government control and increasing private sector participation.

In December 2021, the KRG Ministry of Natural Resources had appointed Iraqi Kurdish Company KAR Group as the Engineering, Procurement and Construction contractor for the gas pipeline project. The project will add a 36-inch pipeline from the Khor Mor and Chemchemal gas fields to Erbil and a 52-inch pipeline from Erbil to Dohuk at the Turkish border.

“The first phase of this project will be completed by April-May of next year to accommodate additional gas supply of 250 million scf/d and the second phase will immediately follow. We have understood from KAR that engineering consultant ILF has completed their work and is ready to place the order for the materials required for the construction of the pipeline.”

(Reporting by Sowmya Sundar; Editing by Anoop Menon)