Dana Gas halts Khor Mor output over threats

Dana Gas has temporarily shut the main production facilities at Iraq’s Khor Mor gas field after receiving what it described as credible security threats amid escalating regional tensions.

The company said the precautionary suspension was intended to protect employees and infrastructure at the field in Sulaimani province. It was monitoring security conditions and coordinating with the Kurdistan Regional Government, provincial authorities and the federal government before deciding when production could safely resume.

No attack, damage or casualties were reported at the installation when the shutdown was announced on Thursday. Dana Gas did not disclose the nature or origin of the threat, leaving uncertainty over the duration of the stoppage and the measures required for reopening the facilities.

The closure immediately disrupted gas deliveries to power stations across the Kurdistan region, where electricity demand is elevated during the summer. Regional authorities estimated that the suspension had removed about 2,500 megawatts of generation capacity, while the federal Electricity Ministry warned of a potential 1,400-megawatt reduction in supplies available to the national grid.

Khor Mor provides fuel for major power plants serving Erbil, Sulaimani and other population centres. Its central role in electricity generation means even brief interruptions can trigger widespread power cuts, increase reliance on private diesel generators and place additional pressure on households and businesses.

The field is operated by Pearl Petroleum, a consortium led by Dana Gas and Crescent Petroleum. Other shareholders include Austria’s OMV, Germany’s RWE and Hungary’s MOL. Pearl Petroleum is the largest private gas-sector investor in Iraq and produces natural gas, condensate and liquefied petroleum gas from Khor Mor.

Production capacity rose to 750 million standard cubic feet of gas per day after the KM250 expansion project was commissioned in October 2025. The development added 250 million cubic feet of daily processing capacity, representing a 50 per cent increase, alongside higher condensate and liquefied petroleum gas output.

The expansion had strengthened plans to improve round-the-clock electricity provision and reduce dependence on imported fuel. Output reached about 700 million cubic feet per day by December 2025 and continued to rise during the opening months of 2026, making the latest stoppage particularly disruptive for energy planners.

Khor Mor has repeatedly faced security incidents. A drone strike in April 2024 killed four Yemeni workers and injured two others, forcing production to stop. Another attack in November 2025 struck a storage facility, caused a fire and led to extensive electricity cuts across the region. Iraqi authorities later said the assault involved two drones and that those responsible had been identified.

Operations were also scaled back during the regional conflict that began in February 2026. Dana Gas suspended production as a precaution before gradually restoring output when security conditions improved. The field was maintained in a condition that allowed it to be restarted once management judged the risks acceptable.

The latest suspension comes as Iraq’s energy network faces broader threats from regional warfare and drone activity. A drone came down near the Faw port on Wednesday without causing damage, while crude-loading operations at Iraqi terminals were briefly interrupted after another drone incident involving an oil tanker.

Baghdad has increased security around strategic energy installations while seeking foreign investment to rebuild production and power infrastructure. Periodic attacks, disputes over energy revenues and Iraq’s exposure to conflicts involving neighbouring states continue to complicate those efforts.

The Khor Mor stoppage also highlights the vulnerability created when several power stations depend on one principal fuel source. Alternative generation can soften the effect, but replacing the field’s gas volumes with liquid fuels is more expensive and can reduce plant efficiency.