Oman is working on over RO400 million ($1.04 billion) worth of electricity, gas and solar projects to cater to the growing demand in the sultanate, said a report.
To encourage future energy-related ventures in the country through attracting domestic and foreign investments, the government has launched the Musandam Gas Plant (MGP) and Musandam Power Company (MPC).
On completion the projects will produce 45 million standard cu ft of gas, 20,000 barrels of exportable condensates per day and 80 tonnes of liquified petroleum gas each day.
Oman Oil Company’s (OOC) wholly-owned subsidiary, Oman Oil Company Exploration and Production and Oman Gas Company inaugurated these facilities at a celebration in Al Dara in Wilayat Bukha in Musandam.
The scope of work includes construction of subsea pipelines, oil and gas storage depots and export platforms.
The Musandam Power Company (MPC) is set up by a consortium comprising of OOC, holding 70 per cent of shares and LG International Corporation, holding 30 per cent of shares.
This Independent Power Producer has been constructed to build a new natural gas fueled, dual fuel reciprocating engine based power generation facility with a net capacity of 120 MW at Reference Site Conditions.
The power plant uses natural gas as its primary fuel, with light fuel oil as a back up to ensure uninterrupted power.
The MPC, an affiliated company of Oman Gas Company, has signed a power purchase agreement (PPA) with Oman Power and Water Procurement Company (OPWP).
As per the deal, OPWP will purchase the electrical power capacity produced from the plant for a period of 15 years, it added.
Electricity output will be transmitted to the existing medium voltage grid through a new 132KV transmission line being built by the Rural Areas Electricity Company.
The Plant’s 120MW net output capacity will support demand growth in Musandam Governorate, it added.