A consortium headed by Mitsui has won the contract to develop the US$630mn Salalah-2 power plant in Oman
The Japanese firm revealed that they had been awarded the contract by the Oman Power and Water Procurement Company (OPWP) following their bid in October 2014.
The consortium will build a 400MW natural gas-fired combined cycle power plant in the Salalah Industrial Area in southern Oman, to be completed in January 2018.
Under the terms of the deal, Mitsui and its partners will maintain and operate the new plant along with the existing 273MW Dhofar Power Plant, selling electric power from both under a 15-year purchase agreement with OPWP.
The project, to be taken on along with consortium partners ACWA Power and the Dhofar International Development and Investment Holding Company (DIDIC), represents Mitsui’s first involvement in the development of downstream infrastructure in the country.
Oman’s demand for power is steadily growing with the average annual increase from 2013 to 2020 projected at 10 per cent, from 2,592MW in 2013 to 5,023MW in 2020, according to a seven-year outlook report by OPWP.
