Mitsui-led consortium to develop $2.3bn power projects in Oman

4 January 2016 (Last Updated January 4th, 2016 18:30)

A consortium led by Japanese Mitsui has received a letter of award for a $2.3bn contract from Oman Power and Water Procurement Company (OPWP), to develop power projects totalling 3.15GW of generation capacity.

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A consortium led by Japanese Mitsui has received a letter of award for a $2.3bn contract from Oman Power and Water Procurement Company (OPWP), to develop power projects totalling 3.15GW of generation capacity.

Under the deal, Mitsui and its partners will be responsible for the construction of the 1,450MW Ibri and 1,700MW Sohar-3 power generation projects in northern Oman.

Once developed, the independent gas-fired combined cycle power plants will both be operated by Mitsui and supply power to the OPWP.

While the Japanese firm owns the majority 50.1% stake in the consortium, the remaining shares are held by ACWA Power (44.9%) and Dhofar International Development and Investment (DIDIC), which owns a 5% interest.

"The projects are expected to meet around 30% of the power requirements in the Muscat area."

The contract is expected to be signed next month, following which 15-year power purchase deals for the project are also to be signed.

While Sohar-3 is expected to start power generation in January 2019, the Ibri plant will start commercial operations in April 2019.

The projects are expected to meet around 30% of the power requirements in the Muscat area, Mitsui said.

Last year in March, Mitsui won the Salalah-2 power project in Oman.


Image: Both the independent gas-fired combined cycle power plants will be operated by Mitsui. Photo: courtesy of a454/ FreeDigitalPhotos.net.