Japan’s Mitsui & Co said on Monday its consortium had been awarded a $2.3 billion power plant project in Oman. The consortium will build a total 3.15-gigawatt gas-fired combined cycle power generation units for Ibri and Sohar-3 power generation projects, the Japanese trading house said in a statement.
Mitsui holds 50.1 percent in the consortium, with 44.9 percent held by Saudi Arabia’s ACWA Power and 5 percent by Dhofar International Development and Investment Holding Co. SAOG (DIDIC). The contract is set to be signed next month, and the two power plants are set to start commercial operations in 2019, Mitsui said.
ACWA Power, with a 44.9 per cent stake, and DIDIC, with a 5 per cent share-holding, are investors in the two projects. As the selected developer, the consortium will construct, maintain and operate the two power plants in line with a series of project agreements due to be signed with various stake-holders next month. At Ibri, the consortium is required to develop a 1,450 MW generation capacity IPP at a site adjoining the Ibri Industrial Estate in Dhahirah Governorate.
The Sohar-3 IPP — a 1,700 MW plant — will come up within the Sohar Industrial Port. Commercial operation dates are in January 2019 for Sohar-3 and in April 2019 for Ibri.
Demand for electric power in Oman is increasing rapidly because of the economic growth driven by the oil and gas sector. Mitsui will operate both plants and sell electric power under a 15-year power purchase agreement with OPWP.
The power plants will be supplying approximately 30 per cent of the electricity that will be consumed in the Muscat area once the commercial operation is achieved, it said.
“The Ibri and Sohar-3 power generation projects mark Mitsui’s further involvement 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,” the Japanese conglomerate said.
“Mitsui will 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 the 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,” it added.