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Oman Oil Musandam gas-fired power plant reaches EPC stage

Oman Oil Musandam IPP to replace diesel powergen

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe wholly state-owned Oman Oil Company (Oman Oil or OOC) and its partner LG International Corporation  (LG) from South Korea made the final investment decision for their joint venture Musandam Power Company (MPC) independent power plant (IPP) to be built at Tibat-Wilayat Bukha in the Musandam Governorate of northern Oman.

Usually in the Sultanate of Oman the electrical power generation is financed, decided and operated by the Oman Power and Water Procurement Company (OPWP) under the govern of the Ministry of Finance Authority for Electricity Regulation and the Public Authority for Electricity and Water (PAEW).

Oman-Oil_Musandam-IPP_MapIn order to support its economical development, Oman is planning to double its installed base of power generation in the period 2012 to 2019.

In parallel to this expansion, Oman Oil is now able to develop its tight gas reserves as the most efficient source of supply for it petrochemical industry and electrical power generation.

With this new source of energy available in large quantity, Oman can not only envisage to build new gas-fired integrated water and power plants (IWPP) in industrial zones, but also to convert diesel-powered generation facilities into clean gas for the more remote locations.

In that respect, Oman Oil made the final investment decision (FID) for the construction of the Musandam independent power plant (IPP) in the upper north of Oman, along the Strait of Hormuz.

Oman Oil to run Musandam IPP engines with dual fuels

Scaled at 120 MW, this Musandam Power Company IPP project has been designed to run primarily with natural gas but also to accept diesel fuel as alternative in respect with its remote location from the gas fields.

Oman-Oil_Musandam-IPP_Dual-Fuels-EnginesTherefore instead of conventional gas turbines, Musandam IPP will be powered by reciprocating engines optimally designed to operate with gas and diesel.

Since Musandam electrical grid is independent from Oman national grid, the load capacity can range widely from 10MW to the nominal capacity of 120MW, the Musandam IPP will be equipped with 15 engines.

In order to guaranty the performances of this dual-fuels facility, Oman Oil has decided to award the engineering, procurement and construction contract (EPC) together with 15 years long-term service agreement (LTSA).

To secure the gas supply, Oman Oil and LG have decided to locate the Musandam IPP next door to the Musandam Gas Plant (MGP) currently under construction and to be operated by its upstream subsidiary Oman Oil Company Exploration and Production (OOCEP).

With Musandam Gas Plant to come into commercial operation by end of 2015, Oman Oil is willing to build the Musandam IPP project on fast track so that it could start gas-fired power generation in 2016.

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