Gulf Energy Development cements participation in US$480 million power project in Oman
Gulf Energy Development (GED) has announced that it has completed the acquisition of a 45% stake in Duqm Power Company (DPC) from the Oman Oil Company (OOC), a wholly-owned subsidiary of the Omani government. DPC has been established to develop a 326 MW independent power and water project in the Duqm Special Economic Zone of Oman.
The government of Oman approved the creation of a joint venture between GED and OOC to develop the project on 5 September. GED has purchased the 45% stake for US$8.75 million. OOC owns the remaining 55% stake.
The project entails a 326 MW gas-fired power plant and a desalination plant with an installed water generating capacity of 1,667 cubic metres per hour. The total project cost is US$483 million.
The project commenced construction in August 2018 and is scheduled to enter commercial operations in three phases between July 2020 and May 2022.
The plant will supply power and water to the Duqm Refinery and Petrochemical Industrial Complex, a large-scale refinery with a crude oil production capacity of approximately 230,000 barrels per day, under a 25-year Power and Water Purchase Agreement, extendable for up to five years.
Owned by a 50/50 joint venture between Oman Oil Company and Kuwait Petroleum International, the refinery is currently in construction and scheduled to be completed in late 2019. It is one of the central features of the government's drive to transform Duqm into an industrial centre, as well as a viable and strategic energy hub for the region. Investments of up to US$15 billion are earmarked for petrochemicals and infrastructure development over the next 15 years.
Earlier this year, the Oman Power and Water Procurement Company (OPWP) issued a Request for Qualification (RFQ) for a clean coal-fired independent power project (IPP) in the area. The project entails the development of a 1.2 GW power plant that would utilise carbon capture and storage (CCS) technology to reduce greenhouse gas emissions.
