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Mitsui to jointly develop Salalah-2 power project in Oman

Staff writer ▼ | March 24, 2015
Mitsui & Co. has been awarded the contract to jointly develop the Salalah-2 power generation project in Oman along with the Saudi Arabian ACWA Power Co. and Dhofar International Development and Investment Holding Co.
Energy   A $630 million project
The agreements will be signed in April, including electric power sales contracts. The new power plant, to be located in the Salalah Industrial Area in southern Oman, is scheduled to be operational in January 2018.

Total project cost is estimated at $630 million (76 billion yen).

Demand for electric power in Oman is increasing rapidly because of the economic growth led by the oil and gas sector. Mitsui said it will help meet that demand by jointly building the 400-megawatt natural gas-fired combined cycle power plant in the Salalah Industrial Area and also by acquiring the existing Dhofar Power Plant, which has an output of 273 MW.

Mitsui will operate both plants and sell electricity under a 15-year power purchase agreement with Oman Power and Water Procurement Co.

Mitsui has experience in the upstream oil and gas sector in Oman through its participation in onshore oil and gas production and development projects, and the Oman LNG project. Mitsui said the Salalah-2 power project marks its first involvement in the development of key downstream infrastructure through a power generation project.