# [WARNING] Dana Gas halts Khor Mor, risking Iraqi power gas supplies

*Thursday, July 16, 2026 at 6:26 PM UTC — Hamer Intelligence Services Desk*

**Detected**: 2026-07-16T18:26:00.486Z (3h ago)
**Tags**: MARKET, ENERGY, NATURAL_GAS, MIDDLE_EAST, RISK_PREMIUM, POWER
**Sources**: OSINT
**Permalink**: https://hamerintel.com/data/alerts/14821.md
**Source**: https://hamerintel.com/summaries

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**Summary**: Dana Gas has suspended all operations at the Khor Mor gas field in Iraq’s Kurdistan Region due to credible security threats, with Baghdad warning of up to 1,400 MW of power loss. The shutdown threatens regional gas and LPG output and heightens risk premia on Iraqi energy infrastructure.

## Detail

1) What happened:
Report [3] confirms that UAE‑based Dana Gas has suspended all operations at the Khor Mor gas field in Sulaymaniyah (Kurdistan Region of Iraq) citing credible security threats and escalating regional tensions. Iraq’s Electricity Ministry warns that the halt to gas supplies could remove up to 1,400 MW from the national power grid.

2) Supply and demand impact:
Khor Mor is a key non‑associated gas and condensate field feeding power plants in the KRI and, via swaps and displacement, the broader Iraqi system. A full shutdown immediately reduces local gas supply, potentially forcing increased use of liquid fuels (fuel oil, diesel) in Iraqi power generation, raising domestic product burn and cutting export availability. The cited 1,400 MW is material for Iraq’s already fragile grid; rolling blackouts can dampen industrial output and fuel domestic unrest, which in turn raises operational risk for broader Iraqi oil and gas infrastructure.

3) Affected commodities/assets and direction:
The direct global volumetric loss in gas and condensate is modest relative to the global market, but the signaling effect is important: Kurdish fields have again become hostage to security dynamics. Directionally bullish for regional fuel oil and diesel cracks as Iraq (and possibly neighbors) rely more on liquids for power. Slightly supportive for European and Asian gas benchmarks through higher perceived risk to Middle Eastern gas projects and potential LNG demand uplift if disruptions persist. Iraqi sovereign risk and Kurdistan‑linked E&Ps face wider spreads and higher equity risk premia.

4) Historical precedent:
Khor Mor and other KRI assets have been disrupted before by drone and rocket attacks (e.g., 2022–23 incidents), which caused output interruptions and spooked IOCs operating in the region. Those events temporarily widened regional spreads and elevated security discounts on Kurdish crude (KBT) and gas projects.

5) Duration of impact:
If the shutdown is precautionary and security guarantees are restored, operations could resume within days to weeks. However, given concurrent Iranian regional escalation, markets will price a higher probability of repeated outages. Expect a persistent risk premium on Iraqi/Kurdish gas and condensate assets and a marginally tighter regional fuel balance through at least the summer cooling season.

**AFFECTED ASSETS:** Fuel oil cracks (Mediterranean and Middle East), ICE Gasoil, Iraqi sovereign bonds, Kurdistan-focused E&P equities, TTF natural gas, JKM LNG