Oman Oil inaugurates Musandam gas and power plants

November 13, 2017

Oman Oil Company’s wholly-owned subsidiary Oman Oil Company Exploration and Production (OOCEP) and Oman Gas Company on Monday inaugurated the Musandam gas plant and Musandam Power Company’s power plant in the wilayat of Bukha in Musandam governorate.

The opening ceremony was held under the patronage of H H Sayyid Mansoor bin Majid bin Taimur al Said.

Built to meet the current and future power demand in Musandam, the new gas and power plants will serve as a vital and stable source of energy in the governorate. Both facilities lie side by side.

“I would like to extend my congratulations to the people of Musandam and Oman Oil for this eminent accomplishment. This is an important energy boost to the sustainable development of Musandam,” H H Sayyid Mansoor said.

“I am delighted to witness this important moment that reflects rapid development of the sultanate,” he added.

The Musandam gas plant has been established by OOCEP, which is responsible for managing investments in exploration and production sector. The project included the construction of subsea pipelines, oil and gas storage depots and export platforms. The plant’s production capacity is estimated at 45mn standard cubic feet of gas, 20,000 barrels of exportable condensates per day and 80 tons of liquified petroleum gas per day.

Musandam Power Company was set up by a consortium of Oman Oil (70 per cent stake) and LG International Corporation (30 per cent stake). This independent power plant has a net capacity of 120MW at reference site conditions.

The power plant uses natural gas as its primary fuel, with light fuel oil as a backup to ensure uninterrupted power. It will play an essential role in delivering flexible and sustainable energy to Musandam governorate.

Musandam Power Company, which is an affiliated firm of Oman Gas Company, signed a power purchase agreement with Oman Power and Water Procurement Co (OPWP). Under the agreement, OPWP will purchase the electrical power capacity produced from the plant for a period of 15 years.

Electricity output will be transmitted to the existing medium voltage grid through a new 132KV transmission line being built by the Rural Areas Electricity Company. The plant’s 120MW net output capacity will support demand growth in Musandam governorate.

Eng Isam al Zadjali, CEO of Oman Oil, said the inauguration of these two prominent projects aligns with the strategic plans of the sultanate’s government to support the economy, contribute to expand the energy sector activities and establish key power industries throughout Oman.

“These two projects, which cost RO440mn, are expected to encourage future energy related ventures in Musandam through attracting domestic and foreign investments as well as broadening the economic activities and industries,” he said.