QEWC has signed an agreement with the Oman Power and Water Procurement Company to start the construction of the independent power project which will be the largest in the sultanate.
In a major development in the fledgling GCC power sector, Qatar Electricity and Water Company (QEWC) has joined three other international partners to set up a 2,000-megawatt (MW) gas-propelled power plant in the Sultanate of Oman.
Announcing the deal in Doha yesterday, QEWC general manager Fahd al-Mohannadi said his company had joined a consortium consisting of Marubeni Corporation, Chubu Electric and Multitech LLC for setting up the Sur Independent Power Project in Oman.
QEWC has signed an agreement with the Oman Power and Water Procurement Company (OPWP) to start the construction of the independent power project which will be the largest in the sultanate.
At a ceremony held in Muscat, al-Mohannadi signed the project founders’ agreement with the Electricity Holding Company of Oman in the presence of QEWC business development manager Khalid Jolo.
The Sur IPP is the biggest green-field power project ever to be undertaken in Oman and will provide 2,000 megawatts of power on its final commissioning in 2014.
The project, according to QEWC sources, was undertaken to provide power to meet the needs of Oman where demand for electricity on the main interconnected system has been going up at an average annual rate of 8.9% since 2004. Such investment underpins economic development in Oman and improves the living standards for its citizens, an official said.
The power plant near the town of Sur is expected to cost 700mn Omani rials ($1.82bn ), with the first 433MW unit expected to be online by April 2013.
“The successful signing of the gas-fired Sur IPP in Oman demonstrates QEWC’s continued development of an international generation business outside Qatar”, said a statement quoting al-Mohannadi.
The deals, signed by the consortium and related parties, consist of a power purchase agreement with the OPWP, a connection agreement with Oman Electricity Transmission Company, a project founders agreement signed with the Electricity Holding Company, a natural gas sales agreement with the Ministry of Oil & Gas in Oman and an usufruct agreement with the Public Establishment for Industrial Estates.
QEWC currently owns, operates and maintains gas-fired and desalination power and water plants and has under its ownership the installed capacity of 5.4- gigawatt (GW) of power and 255- mn Imperial Gallons per Day of desalination plant.
QEWC is actively seeking greenfield and acquisition opportunities in various regions across the world to expand its generation portfolio internationally.
The company intends to expand through a mix of new investments and acquisitions whereby QEWC is able to build on the successful track record in its domestic market.
QEWC is close to completing an acquisition in Jordan and is participating in the Hassyan IPP opportunity in Dubai.