Japan-led group wins Oman bid for $2.3 billion power-generating project

Mitsui & Company will take the lead to operate the Ibri and Sohar 3 power plants with its partners Acwa Power and Dhofar International Development and Investment Holding.

Oman wants to increase its power-generation sector over the next three years, adding two new gas-fired plants that could help meet 30 per cent of Muscat’s power needs.

A Japanese-led consortium will develop two power plants fuelled by natural gas at a total cost of US$2.3 billion in northern Oman.

Mitsui & Company will take the lead to operate the Ibri and Sohar 3 power plants with its partners, Saudi Arabia’s Acwa Power and Dhofar International Development and Investment Holding (Didic).

The power produced from the completed plants will be about 3.15 gigawatts. The electricity will be sold to the country’s utility, Oman Power and Water Procurement Company (OPWP), for 15 years.

“These power-generation projects represent one of the primary focuses of Mitsui’s infrastructure business,” the Japanese group said, adding that it would continue to bid for contracts in the area.

This is not the first time the trio have joined forces to generate power in Oman.

In March, the same players won the second phase of the combined cycle natural gas-fired Salalah independent power producer (IPP) plant. The 445 megawatt project is already under construction and expected to be completed in two years.

At that time, Acwa’s chief executive, Paddy Padmanathan, said that Oman was a strategic market for the company.

Acwa wants to expand within countries in which it already operates. That includes Oman. The Saudi company is growing more than 20 per cent year over year, with its current portfolio standing at about $27.5bn in 2015 with more than $10bn on the books to be added this year.

Energy consumption in Oman is expected to increase to 47 terawatts per hour (TWh) in 2021 from 25 TWh in 2014, according to a report by OPWP in March.

“Increasing personal income, housing starts and continuing government investment in infrastructure projects are major contributors to continued high growth in electricity demand,” said OPWP.​

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