A consortium formed by Mitsui & Co., Ltd., together with the Saudi Arabian power company ACWA Power and Dhofar International Development and Investment Holding Co. SAOG (DIDIC) of Oman has now received a letter of award from Oman Power and Water Procurement Company SAOC (OPWP) to develop the Ibri, Sohar-3 power generation projects.
The team had submitted a bid on August 30, 2015 for the contract.
Demand for electric power in Oman is increasing rapidly because of the economic growth driven by the oil and gas sector. Mitsui, as the lead investor with a 50.1% shareholding and the managing member of the consortium, will help to meet that demand by newly constructing two natural gas-fired combined cycle power plants with a total capacity of 3,150MW. The sites will be in Ibri (1,450MW), and Sohar (1,700MW), which are both located in northern Oman.
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% of the electricity that will be consumed in the Muscat area once the commercial operation is achieved.
The Ibri, 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.