# [WARNING] Dana Gas Halts Khor Mor, Deep Power Loss in Iraqi Kurdistan

*Thursday, July 16, 2026 at 1:25 PM UTC — Hamer Intelligence Services Desk*

**Detected**: 2026-07-16T13:25:42.157Z (2h ago)
**Tags**: MARKET, ENERGY, MiddleEast, Iraq, NaturalGas, InfrastructureRisk
**Sources**: OSINT
**Permalink**: https://hamerintel.com/data/alerts/14784.md
**Source**: https://hamerintel.com/summaries

---

**Summary**: Dana Gas has suspended all operations at the Khor Mor gas field in Iraqi Kurdistan due to credible security threats, with the KRG Electricity Ministry reporting a 2,500 MW drop in power generation. The outage tightens regional gas and LPG balances and raises the risk premium on Iraqi/Kurdistan energy assets, though direct global oil supply impact is limited.

## Detail

1) What happened: UAE-based Dana Gas has shut its main production facilities at the Khor Mor gas field in Sulaymaniyah, Kurdistan Region of Iraq, citing credible security threats and escalating regional tensions. The KRG Ministry of Electricity reports a 2,500 MW reduction in power generation, implying a severe curtailment of gas feed to power plants. Khor Mor is the primary source of gas for power in the Kurdistan Region and a key supplier of condensate and LPG.

2) Supply-side impact: Khor Mor has been producing in the ballpark of 500+ mmcfd of gas, alongside condensate and LPG volumes. A full shutdown effectively removes most of that supply from the regional market. The immediate effect is domestic power loss (demand destruction in local industry/households) but also reduced exports of condensate and LPG. While the absolute volumes are small relative to global oil and LNG markets, they are significant regionally and for specific counterparties. Prolonged outage could force increased diesel and fuel oil burn for power, marginally lifting regional oil product demand and import requirements.

3) Affected assets and direction: The primary market impact is an increased geopolitical and operational risk premium on Iraqi and Kurdistan-linked energy names and sovereign risk. Kurdistan-focused E&Ps, pipelines (e.g., Ceyhan route sentiment), and local bond markets could see spread widening. Regionally, tighter LPG and condensate supply may support Middle East LPG benchmarks and regional naphtha/LPG spreads. For global crude benchmarks (Brent, WTI), direct volumetric impact is limited, but the event adds to a cluster of Middle East/Iraq-related infrastructure risk that supports a modest upside bias in risk premium.

4) Historical precedent: Khor Mor has been targeted before (rocket attacks in 2022–23) causing temporary shut-ins and repeated reassessments of Kurdistan’s upstream security. Those incidents contributed to higher required returns for Kurdistan exposure and some localized price moves in LPG and condensate markets, but did not materially shift global crude prices. The difference now is the explicit reference to "credible security threats" and a full operational suspension, raising questions about duration.

5) Duration of impact: If the shutdown is brief (days to a week) and no physical damage occurs, market impact will likely be transient and mostly confined to regional assets and short-term LPG/product spreads. A longer outage (weeks+) or follow-on attacks would turn this into a structural constraint on Kurdistan gas growth, sustaining higher regional power costs, supporting product imports, and entrenching a higher security risk premium for Iraqi/Kurdistan energy infrastructure.

**AFFECTED ASSETS:** Middle East LPG benchmarks, Iraqi Eurobonds, Kurdistan-focused E&P equities, Brent Crude, fuel oil swaps Middle East, regional condensate differentials