A consortium led by Japan’s Mitsui & Co, Saudi Arabia’s ACWA Power and Dhofar International Development and Investment has been awarded Oman’s largest single tendered independent power project.
The 3,319 MW Ibri Sohar-3 power generation scheme includes two natural gas-fired cycle power plants of 1,509 MW and 1,710 MW respectively at Ibri and Sohar in the country’s north.
The plants are owned and operated under a 15-year power purchase deal with Oman Power and Water Procurement Company.
They will be connected to the sultanate’s power grid and are expected to supply 30 per cent of the country’s electricity demand once operational in early 2019.
“Demand for electric power in the Sultanate is increasing at a rapid pace so these projects are essential to provide reliable and efficient power to drive economic growth and development,” said ACWA Power president and chief executive Paddy Padmanathan.
“This is our fifth project in the Sultanate of Oman, and in conjunction with our consortium partners we’re committed to meeting the target commissioning dates set out in the agreements.”
Mitsui is the lead investor of the project with a 50.1 per cent share, while ACWA and DIDIC have 44.9 per cent and 5 per cent shares respectively.
ACWA recently began operations in the country at its Barka facility and was awarded the 445 MW Salalah 2 IPP located in Raysut.
In a statement released in March last year, OPWP said peak electricity demand in the country is expected to grow 9 per cent a year from 5,122 MW in 2014 to 9,530 MW in 2021.