Musandam Gas Plant (MGP) and Musandam Power Company (MPC) were inaugurated under the patronage of His Highness Sayyid Mansoor bin Majid bin Taimur Al Said yesterday.
The Musandam Gas Treatment and Power Plants are collectively worth more than OMR400 million.
Oman Oil Company’s (OOC) wholly owned subsidiary, Oman Oil Company Exploration and Production LLC (OOCEP) and Oman Gas Company SAOC (OGC) inaugurated these facilities at a celebration in Al Dara in Wilayat Bukha in Musandam.
Built to meet the current and upcoming power demand in Musandam, the MGP and MPC will serve as a vital and stable source for energy.
“I would like to extend my congratulations to the people of Musandam and Oman Oil Company for this eminent accomplishment.
This is an important energy boost to the sustainable development of Musandam,” he said.“I am delighted to witness this important moment that reflects Oman’s rapid development,” he added.
The MGP is established by OOCEP, OOC’s auxiliary company that is responsible for managing investments in exploration and production sector.
The project included the construction of subsea pipelines, oil and gas storage depots and export platforms.
The plant’s production capacity is estimated at 45 million standard cubic feet of gas, 20,000 barrels of exportable condensates per day and 80 tonnes of liquified petroleum gas each day.
The Musandam Power Company (MPC) is set up by a consortium comprising of OOC, holding 70 per cent of shares and LG International Corporation, holding 30 per cent of shares.
This Independent Power Producer is constructed to build a new natural gas fueled, dual fuel reciprocating engine based power generation facility with a net capacity of 120 MW at Reference Site Conditions.
The power plant uses natural gas as its primary fuel, with light fuel oil as a back up to ensure uninterrupted power.
The plant can operate in extreme conditions including high humidity and temperatures of up to 50 degrees Celsius.
It will play an essential role in delivering flexible and sustainable energy to the Governorate.
The MPC is an affiliated company of Oman Gas Company SAOC, signed a Power Purchase Agreement (PPA) with Oman Power and Water Procurement Company (OPWP).Under this agreement, OPWP will purchase the electrical power capacity produced from the plant for a period of 15 years.
Electricity output will be transmitted to the existing medium voltage grid through a new 132KV transmission line being built by the Rural Areas Electricity Company SAOC.
The Plant’s 120MW net output capacity will support demand growth in Musandam Governorate.
Feed gas for the Power Plant comes from the adjoining Musandam Gas Processing Plant, a facility owned and operated by OOCEP.
The gas plant processes well fluids from the prevailing West Bukha field located close to Omani waters.
Well fluids will be transported from the offshore platform to MGP through a new subsea pipeline.
Part of the natural gas output from the Plant is channeled to the Musandam Power Company under a Sale and Purchase Agreement (SPA) concluded with the Ministry of Oil and Gas, whilst the excess gas will be exported.
This comes in line with the integration strategy of investment and development projects falling under the umbrella of Oman Oil Company in order to maximise value from Oman’s resources.
“The inauguration of these two prominent projects aligns with the strategic plans of the Sultanate’s government to support the economy, contribute to expand the energy sector’s activities and establish key power industries throughout Oman,” said Eng. Isam bin Saud Al Zidjali, CEO of Oman Oil Company.“These two projects are expected to encourage future energy related ventures in Musandam through attracting domestic and foreign investments as well as broadening the economic activities and industries.”
Striving to integrate all of its investment projects and promote sustainability, OOC endeavours to maximize the use of resources and create a cohesive economic entity.
For instance, the gas produced from OOCEP’s MGP is used to generate electricity from the MPC.
OOCEP is currently focusing on upstream investments locally as well as internationally.
Given the potential for growth, the company continues to search for opportunities that contribute towards value creation.
Currently operating three blocks in Oman namely, 60, 42 and 48 and being active in a number of joint ventures, OOCEP has positioned itself strategically to potentially magnify its responsibility in Oman’s oil and gas ecosystem.