Korea's Doosan to supply turbines for Salalah-2 IPP

Doosan Heavy Industries and Construction Company has won a contract to supply steam turbines and generators for a new Independent Power Project (IPP).

  
10 November 2015
South Korean conglomerate Doosan Heavy Industries and Construction Company has won a contract to supply steam turbines and generators for a new Independent Power Project (IPP) currently under development in Salalah in Oman's Dhofar Governorate.

A consortium comprising ACWA Power, Mitsui & Company Ltd and Dhofar International Development and Investment Holding Company (DIDIC) is investing around $630 million in the implementation of the so-called Salalah-2 IPP scheme, having secured the government's mandate the build-own-operate the project in a competitive tender.

It entails the construction of a green-field 445 MW high efficiency gas-fired power generation plant, alongside the acquisition of an existing 273 MW natural gas fired power plant operated previously by Dhofar Power Company.

Seoul-headquartered Doosan announced recently that it had signed a deal with China's Shandong Electric Power Construction Corporation III (SEPCO III), which is undertaking the lump-sum turnkey implementation of the greenfield component of the Salalah-2 IPP.

Doosan said it had outbid reputable global turbine manufacturers Siemens and Alstom, among others, in securing the contract to supply power plant equipment for the Salalah-2 IPP.

Company Vice President Sohyung Kim, who heads the Turbine/Generator sales and marketing division, was quoted as saying: "Through the acquisition of the new order, we proved the excellence of Doosan's turbine and generator products to Chinese EPC companies.

The project has served as a great opportunity to expand the pool of our customers, and Doosan expects to collaborate further with Chinese companies to accelerate growth in the turbine/generator business."

Civil construction work on Salalah-2 is under way at a site adjoining the existing 273MW power plant of the erstwhile Dhofar Power Company. ACWA Power and Mitsui each own a 45 per cent stake in the project, with DIDIC holding the remaining 10 per cent.

The founder-developers are expected to offer around 35 per cent of their issued share capital through a public offering on the Muscat Securities Market (MSM) within the next four years in line with Omani regulations.

Significantly, the deal with SEPCO III effectively marks Doosan's debut in Oman's rapidly expanding turbine market fuelled by galloping electricity demand growth.

The Korean firm has supplied nearly 600 units (equivalent to around 115 gigawatts of generation capacity) to power plants around the world.

Earlier, in July, Doosan announced it had secured a contract valued at around $90 million to undertake the second phase expansion of Haya Water's flagship sewage treatment plant at Al Ansab in Muscat Governorate.

© Oman Daily Observer 2015