A Power Purchase Agreement (PPA) has been signed by the Central Utilities Company (Marafiq), a member of the OQ Group, and the Rural Areas Electricity Company (Tanweer), a member of Nama Group.
According to an Oman News Agency report, the agreement was signed by Hamad Ali al-Wahibi, General Manager of Business Development at Marafiq, and Ahmed Said al-Harthy, Acting CEO of Tanweer.
The agreement will see Marafiq build and operate a power plant consisting of gas fuel turbines with a capacity of more than 80MW to meet the energy requirements of Tanweer in Duqm. The power production is expected to start in November 2021.
Abdullah al-Hashimi, Executive Director of Marafiq, expressed his thanks and appreciation for completing this agreement saying that: “This agreement will meet the requirements “economic procurement” of the sector’s law and will create high value to meet the increasing demand in the zone. In addition, the plant will contribute to reducing emissions.
Hilal al-Kharusi, Chairman of Marafiq, also highlighted the importance of this agreement, stating: “This agreement emphasizes the importance and necessity of complementary work between the competent authorities to reach the national strategic goals”.
Marafiq received natural gas in the Special Economic Zone at Duqm in April 2021 and started the commissioning activities of the integrated power and water plant, which has reached a completion rate of 92%, and all work on the 132 kV high voltage transmission line has been completed.