Thursday 25 / April / 2024
Muscat: Oman Power and Water Procurement (OPWP) Company aims at reducing gas consumption by 20 per cent in 2021, said a top-level official of OPWP.
“We are aiming to reduce the gas consumption by 20 per cent by 2021 to reach 205 cubic metres per megawatt hour,” Ahmed bin Saleh Al Jahdhami, chief executive officer of OPWP, said on the side line of the signing ceremony to build two independent power projects (IPP) located at Ibri and Sohar.
“Introduction of new technologies and improvement of existing plants helps the reduction of gas consumption in these plants,” Eng. Yaqoob bin Saif Al Kiyumi, chief operating officer of OPWP said.
He added that Oman is planning to develop two 800 megawatt power plants, which will start its operation by 2021 and 2022, respectively.
“First project’s prequalification is to start soon and we hope it will end by this year and the project will be in Muscat,” Al Kiyumi asserted.
“Location for the second plant is not yet decided,” he added.
A number of agreements to build two IPP located at Ibri and Sohar have signed by OPWP, with a consortium of Japan’s Mitsui & Co., ACWA Power, and Dhofar International Development and Investment Holding Co (DIDIC).
The OPWP is the sole procurer of all new power generation and water desalination capacity in the Sultanate.
According to the company, this is the largest power procurement project in the Sultanate.
Signing ceremony was held at Al Bustan Palace Hotel under the patronage of His Highness Sayyid Taimur bin As’ad Al Said with the attendance of several government officials and representatives from the consortium and electricity sector in the Sultanate.
“These projects will have an active role in meeting the increasing demand for electricity in view of urbanisation and ambitious projects that are implemented in various sectors in the Sultanate,” noted Ahmed bin Saleh Al Jahdhami. “Projects will cost over OMR885 million,” he added.
According to him, the plants have a total installed capacity of 3,219 megawatt (MW), consisting of 1,509MW at Ibri and 1710MW at Sohar, respectively.
Speaking about the operation, Al Jahdhami said “Ibri plant is expected to start operation by the second of 2019 and the Sohar plant by the first quarter of 2019.”
Power purchase contract
The consortium will build, own and operate both plants and sell power to Oman Power and Water Procurement under a 15-year power purchase agreement.
According to the Mitsui officials, the mega power plants will supply approximately 30 per cent of the electricity that will be consumed in Muscat area, once commercial the projects start commercial operation.
Mitsui & Co., Ltd. as the managing member of the consortium will hold 50.1 per cent, ACWA Power will hold 45 per cent stake in the project.
Agreements were signed by Ahmed bin Saleh Al Jahdhami, and on behalf of the Consortium Yoshio Kometani, chief operating officer of Mitsui & Co Ltd; Mohammed Abunayyan, chairman ACWA Power and Sheikh Khalid Al Mashani, chairman ofDhofar International development And Investment Holding Co.
