News

Foundation stone laid for 120 megawatt-Musandam power project

  • Oct 12, 2015
  • Times of Oman

Muscat: A foundation stone laying ceremony to build the first independent power project in Musandam with a generation capacity of 120 megawatt was held on Monday.

Musandam Power Company (MPC) is developing the Musandam independent power project (Musandam IPP) based on high and world-class standards and technology. MPC has selected dual fuel reciprocating engines configuration for the project, following a competitive pre-qualification and tendering process to deliver flexible, lowest life cycle costs and sustainable energy to the governorate, said a company release.

The plant will use natural gas as the main fuel to maintain the stability of the local electricity supply and support sustainable development in the Musandam governorate while significantly contributing to the Sultanate’s energy-production capabilities and long-term economic diversification plans.

Storage diesel fuel will be used during emergencies as the alternate fuel on discontinuation of natural gas fuel to guarantee the electricity supply for the governorate. The electricity generated from this project will be transmitted to the existing medium voltage grid through the new 132KV transmission lines being built by Rural Areas Electricity Company. The generated electricity will serve the power demand of the Musandam Governorate in the future.

The ceremony was held under the auspices of Sayyid Khalifa bin Al Murdas Al Busaidy, Governor of Musandam, and attended by number of officials from the government and representatives from the private sector.

“This is a significant step for Oman Oil Company as we continue to expand our projects locally which have been instrumental to create multi-regional industrial hubs across the Sultanate. Our strategy comes along with the Government vision of diversifying the economy resources and support the development plans,” said Eng. Isam Al Zadjali, chief executive officer of Oman Oil Company (OOC).

“This new plant, which is expected to be commissioned by end of 2016, is part of a major integrated development comprising the development of Musandam Governorate. Musandam IPP will play an essential role in delivering flexible and sustainable energy to the governorate. The project will be able to meet the power needs of the current and upcoming projects in the region as well as expecting to benefit the local community,” he added.

“OOC will continue investing in projects that will support the development of the Governorate through upcoming projects in the energy value chain,” he added.

Jeong, vice president of LG International (LGI), said, “LGI believes that the Musandam IPP could be a sustainable power source to contribute the overall economic development of Musandam. With trust and solid cooperation between OOC and LGI, LGI will continue in efforts to support benefits to the local community by successful commercial operation of Musandam IPP in near future.”

“The project provides further proof of the competitiveness of engine power plants compared to traditional technologies. The power plant will offer operational flexibility, reliability and lifecycle value – not to mention efficiency in harsh conditions,” said UpmaKoul, Business Development Manager at Wärtsilä Energy Solutions.

The engines are attuned to maintain top fuel efficiency in conditions of high humidity and extreme temperatures of up to 50 degrees.

Musandam Power Company was established in 2014 as a joint venture between OOC, the government’s investment arm in the energy related sectors,holding a 70 per cent stake, LGI, holding a 30 per cent stake,celebrated the occasion of laying the foundation stone for the construction of Musandam Independent Power Plant.

Recently, MPC had announced the execution of a long term Power Purchase Agreement with Oman Power and Water Procurement Company and a Natural Gas Sales Agreement with the Ministry of Oil and Gas, providing for the supply and sale of natural gas to the company.

As Oman’s first independent power project in the Musandam Governorate, MPC will use natural gas to be processed by OOC’s wholly owned subsidiary, Oman Oil Company Exploration and Production from the adjacent Musandam Gas Processing Plant to integrate the value chain and maximise value from Oman’s resources.