Japan, Saudi Arabia and Oman consortium to develop US$630mn power plant

powerplant-michaelcoghlan-flickrThe power plant to be constructed will have a capacity of 400MW. (Image source: MichaelCoghlan/Flickr) Japan’s Mitsui, Saudi Arabia’s ACWA Power and Oman’s Dhofar International Development and Investment Holding (DIDIC) have secured a contract from the Omani government to build and operate a US$630mn natural gas-fired power plant in Salalah, Oman

The consortium will build a 400MW natural gas-fired combined cycle power project in the Salalah Industrial Area, and acquire an existing 273MW project from the Dhofar Generating Company, taking the total capacity to 673MW, stated Mitsui officials.

“Mitsui will operate both plants and sell electric power under a 15-year power purchase agreement (PPA) with Oman Power and Water Procurement (OPWP),” said Mitsui in a statement.

The Dhofar region, which covers around 77,000 electricity consumers, is expected to have a peak demand growth of 10 per cent to 800MW in 2020. The new project is expected to generate electricity by January 2018. Project agreements as well as power purchase agreements (PPAs) will be signed in April 2015.

Mitsui and ACWA Power will have a 45 per cent stake each in the consortium, while the remaining 10 per cent is held by DIDIC, added Mitsui.

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