Long-Term Gas Agreements from Jummal Field Drive Industrial Transformation in Kurdistan and Secure 142 MMscf/d Supply

Sharjah | EcoPulse24

Dana Gas and Crescent Petroleum, via their Pearl Petroleum consortium, have signed long-term agreements to sell low-emission natural gas from the Jummal field in the Kurdistan region of Iraq. This move aims to bolster the industrial sector's transition to cleaner, more cost-effective energy sources, ensuring stable gas supplies for cement and steel industries during their expansion phase.

Under these agreements, 142 million standard cubic feet per day (MMscf/d) of gas will be supplied over ten years to several cement companies in Bazian, Sulaymaniyah, as well as a steel producer in Erbil. Deliveries are slated to begin in the second half of 2027, coinciding with the start of production from the Jummal field following ongoing development work.

The field is currently undergoing advanced appraisal and development, including drilling three wells and installing an extended well test facility, along with new supporting infrastructure and pipelines. A 40-kilometer pipeline will directly connect the field to industrial consumers in Bazian, ensuring reliable and efficient supply.

The agreements cover Mas Cement, Bazian Cement, Delta Cement, Ghassin Cement, and Sulaymani Cement in the Bazian industrial complex, and Van Steel in Erbil. This follows the partners' announcement to begin appraisal of the Cretaceous reservoir at Jummal in early 2025, with a $160 million investment planned for full development and expanding the industrial consumer base.

The partners emphasized that the long-term contract model balances revenue stability with secure energy supply for industry, enabling natural gas to replace more expensive and polluting liquid fuels. This supports emission reductions and improves energy efficiency in major industrial corridors.

This step follows the completion of the Khor Mor 250 Expansion Project in October 2025, eight months ahead of the revised schedule, which added 250 MMscf/d of processing capacity. The facility now processes up to 750 MMscf/d, supplying about 80% of Kurdistan’s electricity and supporting clean energy for the region and beyond.

EcoPulse24 Analysis:
The Jummal agreements mark a qualitative shift in Kurdistan’s industrial energy demand structure toward long-term gas contracts that reduce energy risks and improve cost competitiveness. The economic impact extends beyond direct supply, fostering industrial investment, lowering fuel and emission costs, and strengthening local network reliability. With infrastructure investments and dedicated pipelines, value chain integration from upstream to end-user is enhanced. Broadly, this trend could stabilize the regional gas market and accelerate the energy transition in heavy industry, establishing a sustainable growth base for Kurdistan's economy after production begins.