The Gulf Cooperation Council Interconnection Authority (GCCIA) and the Qatar Development Fund (QDF) have signed a 38.5 million Omani riyals ($100 million) financing agreement for a new grid interconnection project, linking the GCC power network to Oman.

The direct interconnection will have a 1,700 megawatt (MW) transmission capacity and a net transfer capacity of 1,200 MW, a GCCIA statement said, adding that construction is slated to begin in the second half of 2025, with commissioning planned for the first half of 2027.

The project involves the construction of two 400 kV overhead transmission lines with a total length of 530 kilometres connecting the GCCIA's Al Sila station in the UAE to Ibri in Oman, and includes the construction of two 400 kV substations in Ibri and in Al Baynunah in Abu Dhabi.

GCCIA stated that the Oman project is part of a three-project initiative, which includes ongoing developments in the UAE and Kuwait, aimed at strengthening the Gulf grid, integrating renewable energy sources, and enhancing regional electricity trade.

Local english language newspaper Oman Daily Observer stated in a report on Thursday that the total cost of the project is $700 million.   

QDF is also helping fund the interconnection project linking the GCC grid with Iraq via Kuwait.

(Writing by Deva Palanisamy; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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