Dana Gas has halted operations at the Khor Mor gas field in Iraq due to credible security threats, the company announced on Wednesday. This decision was made in coordination with the Kurdistan Regional Government (KRG) and Iraqi federal authorities to protect personnel and infrastructure.
Key Details
The Khor Mor facility, which supplies over 80% of the electricity needs for the Kurdistan Region, has faced ongoing security challenges, including rocket and drone attacks from armed groups. The closure is expected to reduce electricity generation capacity in the region by up to 3,000 megawatts, leading to significant power shortages that could limit availability to just a few hours per day.
Background
The Khor Mor gas field is the largest producing non-associated gas field in Iraq, with estimated reserves of 8.2 trillion cubic feet (Tcf) of natural gas. The facility's recent $1.1 billion expansion increased its production capacity by 50% to 750 Million Standard Cubic Feet per Day (MMSCFD). Despite the shutdown, Dana Gas reassured stakeholders that the plant is prepared to resume operations quickly once security conditions improve. The surplus gas from Khor Mor is intended for federal power plants, underscoring its importance to the national energy landscape.
The closure of the Khor Mor gas field could lead to increased energy prices in the Kurdistan Region due to reduced electricity supply. Additionally, the disruption may affect broader energy markets, particularly in the Middle East, as investors assess the implications of ongoing security issues on regional energy stability.
Watch for updates on security conditions in the region that may influence the timeline for resuming operations at the Khor Mor facility.