07 February 2012
MUSCAT -- The government-owned energy investment firm Oman Oil Company has secured a mandate to develop an Independent Power Project (IPP) in Musandam Governorate. The gas-fired project, initially sized at around 120 megawatts (MW) of power generation capacity, will be implemented in parallel with the $600 million Musandam Gas Plant (MGP) project currently under development by its upstream subsidiary, Oman Oil Company Exploration and Production (OOCEP).
It is understood that Oman Oil Company was granted the mandate as 'lead developer' of the Musandam IPP in a 'closed' procurement process dictated by a desire to ensure its fast-track execution in tandem with the Musandam Gas Plant venture.
It follows the constitution of a special high-level committee, with representatives from the Tender Board, Ministry of Finance, Authority for Electricity Regulation -- Oman, and the Public Authority for Electricity and Water (PAEW), to oversee the IPP procurement process.
Oman Power and Water Procurement Company (OPWP), which typically oversees the procurement of new electricity generation and related water desalination capacity under the sector law, will continue to have a role in evaluating the process with a view to ensuring that the IPP is competitively procured, it is learnt.
OPWP had earlier appointed a team of advisers, consisting of Ernst & Young (Financial), Curtis Mallet-Prevost (Legal), Poyry and Worley Parsons (Technical) to develop the feasibility of a design for the power plant.
The IPP will be built not far from where OOCEP is developing an integrated oil and gas processing plant (also known as the Musandam Gas Plant) at Tibat in Wilayat Bukha in Musandam Governorate. A pipeline will supply natural gas as feedstock for the IPP. Separately, the Rural Areas Electricity Company (RAECO) will construct a new 132kVGIS network to evacuate power from the IPP.
When operational by early 2014, the IPP will usher in a new era of gas-based power generation in Musandam Governorate, replacing a network of diesel-based systems currently the mainstay of electricity supply in this northern enclave of the Sultanate.
Meanwhile, OPWP has appointed engineering consultant Worley Parsons to undertake initial technical studies to help progress plans for a new IPP at Salalah, as well as a pair of Independent Water Projects (IWPs) proposed at Suwaiq and Qurayyat. The consultant will assist in initial site location studies ahead of the appointment of advisors to the project slated for end-March 2012.
The Salalah project, which is provisionally sized at 250-300 MW and may also include 25 million gallons per day (MGPD) of desalination capacity, is targeted for completion during 2015.
At the request of the Public Authority for Electricity and Water, OPWP is also overseeing site selection studies for IWPs planned at Suwaiq and Qurayyat. While Suwaiq will boast a water desalination capacity of 46 MGPD, Qurayat will be sized at around 38 MGPD. Besides identifying potential sites for the projects, OPWP's advisers will also assess the potential for power capacity either in co-location with the IWPs or as Independent Water and Power Projects (IWPPs).
MUSCAT -- The government-owned energy investment firm Oman Oil Company has secured a mandate to develop an Independent Power Project (IPP) in Musandam Governorate. The gas-fired project, initially sized at around 120 megawatts (MW) of power generation capacity, will be implemented in parallel with the $600 million Musandam Gas Plant (MGP) project currently under development by its upstream subsidiary, Oman Oil Company Exploration and Production (OOCEP).
It is understood that Oman Oil Company was granted the mandate as 'lead developer' of the Musandam IPP in a 'closed' procurement process dictated by a desire to ensure its fast-track execution in tandem with the Musandam Gas Plant venture.
It follows the constitution of a special high-level committee, with representatives from the Tender Board, Ministry of Finance, Authority for Electricity Regulation -- Oman, and the Public Authority for Electricity and Water (PAEW), to oversee the IPP procurement process.
Oman Power and Water Procurement Company (OPWP), which typically oversees the procurement of new electricity generation and related water desalination capacity under the sector law, will continue to have a role in evaluating the process with a view to ensuring that the IPP is competitively procured, it is learnt.
OPWP had earlier appointed a team of advisers, consisting of Ernst & Young (Financial), Curtis Mallet-Prevost (Legal), Poyry and Worley Parsons (Technical) to develop the feasibility of a design for the power plant.
The IPP will be built not far from where OOCEP is developing an integrated oil and gas processing plant (also known as the Musandam Gas Plant) at Tibat in Wilayat Bukha in Musandam Governorate. A pipeline will supply natural gas as feedstock for the IPP. Separately, the Rural Areas Electricity Company (RAECO) will construct a new 132kVGIS network to evacuate power from the IPP.
When operational by early 2014, the IPP will usher in a new era of gas-based power generation in Musandam Governorate, replacing a network of diesel-based systems currently the mainstay of electricity supply in this northern enclave of the Sultanate.
Meanwhile, OPWP has appointed engineering consultant Worley Parsons to undertake initial technical studies to help progress plans for a new IPP at Salalah, as well as a pair of Independent Water Projects (IWPs) proposed at Suwaiq and Qurayyat. The consultant will assist in initial site location studies ahead of the appointment of advisors to the project slated for end-March 2012.
The Salalah project, which is provisionally sized at 250-300 MW and may also include 25 million gallons per day (MGPD) of desalination capacity, is targeted for completion during 2015.
At the request of the Public Authority for Electricity and Water, OPWP is also overseeing site selection studies for IWPs planned at Suwaiq and Qurayyat. While Suwaiq will boast a water desalination capacity of 46 MGPD, Qurayat will be sized at around 38 MGPD. Besides identifying potential sites for the projects, OPWP's advisers will also assess the potential for power capacity either in co-location with the IWPs or as Independent Water and Power Projects (IWPPs).
© Oman Daily Observer 2012
