Mitsui-led consortium wins $2.3b-power projects in Oman

Business Monday 04/January/2016 19:25 PM
By: Times News Service
Mitsui-led consortium wins $2.3b-power projects in Oman

Muscat: Japan’s Mitsui & Company on Monday said its consortium has been awarded a $2.3 billion bid to build a power plant in two locations across northern Oman.
The consortium will build two independent gas-fired combined cycle power plants, with a combined generation capacity of 3,150 megawatts (MW) to 1,450 MW, in Ibri and a 1,700 MW capacity unit in Sohar, which is called Sohar 3.
The mega power plants will supply approximately 30 per cent of the electricity that will be consumed in the Muscat area, once commercial operations are underway.
Mitsui holds a 50.1 per cent stake in the consortium, with 44.9 per cent held by Saudi Arabia's ACWA Power and 5 per cent by Dhofar International Development and Investment (Didic) Holding.
The contract is set to be signed next month, and Sohar-3 plans to start operations in January 2019, while the Ibri plant is expected to commence power generation in April 2019, added Mitsui.
Mitsui will operate the plants and sell power under a 15-year agreement with Oman Power and Water Procurement Company (OPWP), it added.
The consortium had submitted its bid to the OPWP in August last year, for both projects, in response to a call for bids by OPWP. Subsequent to this, the consortium has now received a letter of award from OPWP to develop the Ibri and Sohar-3 power generation projects.
These power generation projects mark the further involvement of Mitsui in developing one of the largest power plants in the Middle East region, together with key downstream infrastructure in Oman, after being awarded the Salalah-2 power project in March 2015, and the Liwa Plastic Industries Complex project in December 2015.
Demand for electric power in Oman is increasing rapidly because of economic growth driven by the oil and gas sector. Mitsui will help meet that demand by constructing two natural gas-fired combined cycle power plants that have a total capacity of 3,150 MW.
The Japanese company will also use its extensive business operation management know-how gained through its considerable experience in the operation of overseas power generation projects and its track record in Oman to contribute to the successful development and operation of these projects.
These power generation projects represent one of the primary focuses of Mitsui's infrastructure business, and Mitsui will continue to strive to win contracts for quality projects in this area.
Mitsui has a notable track record in the upstream oil and gas sector in Oman, based on its participation in the onshore oil and gas production and development projects, as well as the Oman LNG project.