Overlooking the Strait of Hormuz, Oman’s enclave of Musandam will soon get electricity from its first gas-fired power plant. Located in Tibat, the 122-MW facility is developed as an Independent Power Project (IPP) and due to start operation in February 2017, complementing the region’s prevalent diesel-based generators.
As an area outside of Oman’s national power grid, Musandam used to be provided with electricity and desalinated water via several diesel gensets, operated by the Rural Areas Electricity Company (RAECO), a subsidiary of the Nama Group. RAECO’s diesel gensets in the region have a combined capacity of just under 60 MW, with the largest one powering the town of Khasab.
Denting demand growth beyond 2020
Yet, as of the coming February, Oman’s strategically important enclave can also draw on additional power supply from the Musandam IPP that is meant to will cover projected electricity demand growth at least through 2022.
The gas power plant is being developed through Musandam Power Company (MPC), a joint venture of the state-owned investment arm of Oman Oil Company (OOC), and LG International Corp of South Korea. The developer selected Pöyry to undertake the owner's engineer services; the actual IPP will be realised as a turnkey project by Wärtsilä of Finland.
Being built in close vicinity to a new oil and gas processing plant at Tibat, the Musandam IPP will be able to draw on stable gas supply. The fuel for the 120-MW power plant will be supplied through Oman Oil Company Exploration & Production (OOCEP), a subsidiary of OOC.
The Tibat plant will be processing liquids from the the nearby offshore Bukha A and West Bukha fields. Once onstream, it will have a processing capacity of up to 20,000 barrels of crude, 45 million cubic feet of gas and 75 tonnes of LPG per day. Part of the natural gas output is earmarked as a fuel for the new Musandam IPP.
Targeting 3,490 MW of new-builds
A booming population in the Sultanate of Oman, coupled with strong industrial and tourism development, is driving stellar growth in power consumption. The government's 7-year forecast foresees a 9.5% growth in average annual demand to 8,106 MW by 2019 within the areas of Oman's main interconnected system (MIS) – 9,133 MW could be reached in a 'high case' scenario.
Projected capacity requirement top 6,780 MW by 2018, which would require a third major plant to be commissioned before the end of the decade. Omani state-run energy companies are consequently being pushed to realise several major projects, including Barka Phase III, Sohar Phase II, and Sur plants which are meant to provide a combined capacity of 3,490 MW.