Natural gas consumption by Oman’s expanding power generation and water desalination sector is projected to rise to around 10bn cubic metres per year by 2020, up from 6.7bn cubic metres currently, according to Oman Power and Water Procurement Company (OPWP)
OPWP said that the 32 per cent growth in consumption highlights the pivotal role of natural gas as the primary fuel resource for electricity generation and water desalination within the main interconnected system (MIS), which serves much of the northern half of the sultanate.
The gas requirements in the Salalah System, covering large areas of Dhofar Governorate, are expected to reach 1.2bn cubic metres by 2020, up from 0.72bn cubic metres currently, the firm added.
Oman’s Ministry of Oil and Gas has reportedly committed to allocating additional volumes for new projects planned for implementation over the next four years at least.
These include plans for the procurement of Independent Power Project (IPP) potentially sized at up to 3,500MW, which will be co-located at Al Suwaiq and other sites within the MIS.
There would also be tenders for procurement of new independent water projects (IWPs) planned in Qurayat and Al Suwaiq, as well as an IPP and IWP proposed within the Salalah System.
In a statement, OPWP said, “Ministry of Oil and Gas has indicated that future gas supply is constrained, but with assurances that the power sector has a priority for future gas allocations. While MOG has committed to gas supply for the planned capacity addition in Salalah for 2018, and is expected soon to commit similarly to the planned MIS plants for 2017 and 2018, gas availability for later plants is not assured.”
The company said that the fuel efficiency improvement efforts have, meanwhile, begun to pay significant dividends. In the main grid, efficiency improvements in the generation fleet are expected to limit growth in fuel requirements to six per cent per year through 2020, despite nearly 10 per cent growth in electricity production.
“The installation of high efficiency generation turbines and desalination plants has helped OPWP achieve a reduction in gas use to an average of around 18.3mn cubic metres per day, which was less than in 2012.”
The peak daily gas consumption during 2013 was 24.2mn cubic metres, a decrease of two per cent from 2012.
“The full commissioning of the Sohar II and Barka III plants in 2013 and the planned commissioning of the Sur IPP in 2014 are achieving significant improvement in overall gas utilization efficiency, based on these plants using newer, more fuel-efficient technology than older plants. Timely addition of new capacity in the future, and continuing dedication to operational efficiency, will underpin sustained progress in the management of gas demand by the power system,” OPWP added.
