Marafiq seals power purchase deal for Oman utility plant

Oman’s Central Utilities Company (Marafiq), a member of OQ Group, has signed a power purchase agreement (PPA) with the Rural Areas Electricity Company (Tanweer), a member of Nama Group, for the new integrated power and water plant that is still under construction in Duqm, said a report.

The power plant, consisting of gas turbines with a capacity of more than 80 MW, has been designed to meet the energy requirements of Tanweer in Duqm. It is expected to begin power production in November 2021, reported Oman News Agency (ONA).

The PPA was signed by Hamad Ali Al Wahibi, General Manager of Business Development at Marafiq, and Ahmed Said Al Harthy, Acting CEO of Tanweer.

On the strategic deal, Marafiq Executive Director Abdullah Al Hashimi said: "It 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."

Marafiq received natural gas in the Special Economic Zone at Duqm in April and began 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.