Regional News

Mitsui, Acwa seal $2.3bn power deal

February 2016

Mitsui & Company said its consortium has won a major contract from Oman Power and Water Procurement Company (OPWP) to develop a $2.3-billion power plant project in the sultanate.

As per the deal, the consortium – which includes Saudi Arabian power company Acwa Power (Acwa) and Dhofar International Development and Investment Holding Company of Oman – will build gas-fired combined-cycle power generation units, with a total capacity of 3.15-gigawatt (GW), for the Ibri and Sohar-3 power projects in the northern region.

Commenting on the win, president and chief executive Tatsuo Yasunaga said: “These new projects mark Mitsui’s further involvement in developing one of the largest power plants in the Middle East region, together with key downstream infrastructure in Oman, after being awarded the Salalah-2 power project in March last year and the Liwa Plastic Industries Complex project in December.”

Demand for electric power in Oman is increasing rapidly because of the economic growth driven by the oil and gas sector, he stated.

Mitsui, as the lead investor, has a 50.1 per cent shareholding in the consortium while Acwa Power has 44.9 per cent and Dhofar holds five per cent.

Under the deal, Mitsui will operate both plants and sell electric power under a 15-year power purchase pact with OPWP.

On completion, these power plants will be supplying 30 per cent of the electricity that will be consumed in the Muscat area, stated Yasunaga.

“Mitsui has a notable track record in the upstream oil and gas sector in Oman through its participation in onshore oil and gas production and development projects, as well as the Oman LNG project,” he added.

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