Gas prices in the Kurdistan Region are expected to fall after production restarted at the Kormor gas field, operated by Dana Gas. The company confirmed the resumption. This has already improved market stability.
Production at Kormor stopped when the Iran conflict began. The halt caused a major supply shortage across the region. It also disrupted electricity generation and household gas supply. The Kurdistan Region depends heavily on this field. As supply dropped, prices increased sharply. In some cases, rates rose to nearly four times their normal level.
Salar Mohammed, head of inspection at the Erbil Directorate of Oil and Minerals, said the restart will directly reduce prices. He explained that prices will fall faster if supply to provinces returns to normal. He also noted that wholesale prices had already started to drop when Dana Gas first signaled a restart. At that time, prices fell from 350,000 dinars per ton to about 200,000 dinars.
Price changes during the crisis show strong volatility. Before the conflict, gas cost about 450 dinars per liter. During the crisis, it jumped to 1,750 dinars. Now, fuel station prices have dropped to around 1,200 dinars. Some stations already sell at close to 1,000 dinars.
Officials expect further declines within 10 days. Prices may fall to 700–750 dinars per liter. This depends on higher daily deliveries to Erbil. Tanker arrivals may increase by five or six trips per day. Earlier, Erbil received 14 to 18 tankers daily. Authorities believe supply will soon return to normal levels.
Household gas distribution is also improving. About 60% of residents have received their first cylinder. When distribution reaches 95%, authorities will start issuing second cylinders. During the crisis, cylinder prices rose to 33,000 dinars. They have now fallen to around 20,000 dinars.
Before the disruption, Dana Gas produced about 750 million cubic feet of gas per day at Kormor. This equals roughly 1,500 tons of LPG. Half was sold commercially. The rest was supplied as subsidized government gas. Around 75% of electricity generation in the Kurdistan Region depends on Kormor gas, showing its importance to energy supply and the economy.
