Dana Gas and Crescent Petroleum, together with partners in the Pearl Petroleum Consortium, have signed long-term Gas Sales Agreements (GSAs) to supply natural gas to major industrial users, with steel production a key focus in the Kurdistan Region of Iraq (KRI).
Under the agreements, industrial customers will purchase up to 142 MMscf/d of gas for 10 years, starting in H2 2027, when production from the Chemchemal field is scheduled to begin. Gas will be delivered via new privately built pipelines, including a dedicated 40-km line linking Chemchemal directly to the Bazian industrial area.
The GSAs include supply to Van Steel Company in Erbil, alongside several cement producers in the Bazian area of Sulaymaniyah province. Cement offtake represents the balance of contracted volumes. Van Steel plant features an Electric Arc Furnace (EAF) with a production capacity of 750,000 tons annually. The company produces billet and rebar.
