Oman has announced the launch of the first independent power generation project in its territory of Musandam.
A foundation stone laying ceremony to build the plant, which has a generation capacity of 120MW, was held on Monday.
Musandam Power Company (MPC) is developing the Musandam Independent Power Project (Musandam IPP). The plant will use natural gas as the main fuel to maintain the stability of the local electricity supply and “support sustainable development” in the Musandam Governorate, a report says.
MPC has selected dual fuel reciprocating engines configuration for the project, following a competitive pre-qualification and tendering process to deliver flexible, lowest life cycle costs and sustainable energy to the governorate, said a company release.
Storage diesel fuel will be used during emergencies as the alternate fuel on discontinuation of natural gas fuel to guarantee the electricity supply for the governorate.
The electricity generated from this project will be transmitted to the existing medium voltage grid through the new 132KV transmission lines being built by Rural Areas Electricity Company. The generated electricity will serve the power demand of the Musandam Governorate in the future.
Sayyid Khalifa bin Al Murdas Al Busaidy, Governor of Musandam laid the foundation stone in the presence of a number of government officials and private sector representatives.
“This is a significant step for Oman Oil Company as we continue to expand our projects locally which have been instrumental to create multi-regional industrial hubs across the Sultanate.
Our strategy comes along with the Government vision of diversifying the economy resources and support the development plans,” said Eng. Isam Al Zadjali, chief executive officer of Oman Oil Company (OOC).
“This new plant, which is expected to be commissioned by end of 2016, is part of a major integrated development comprising the development of Musandam Governorate. Musandam IPP will play an essential role in delivering flexible and sustainable energy to the governorate. The project will be able to meet the power needs of the current and upcoming projects in the region as well as expecting to benefit the local community,” Zadjali added.
“OOC will continue investing in projects that will support the development of the Governorate through upcoming projects in the energy value chain,” he revealed.
The engines are attuned to maintain top fuel efficiency in conditions of high humidity and extreme temperatures of up to 50°.
Musandam Power Company was established in 2014 as a joint venture between the OOC – the government’s investment arm in the energy-related sectors, holding a 70% stake, and LG International (LGI) holding the remaining 30%.
Recently, MPC had announced the execution of a long-term Power Purchase Agreement with Oman Power and Water Procurement Company and a Natural Gas Sales Agreement with the Ministry of Oil and Gas, providing for the supply and sale of natural gas to the company.
As Oman’s first independent power project in the Musandam Governorate, MPC will use natural gas to be processed by OOC’s wholly-owned subsidiary, Oman Oil Company Exploration and Production from the adjacent Musandam Gas Processing Plant to integrate the value chain and maximise value from Oman’s resources.
