Oman Power: Foot Off The Gas Despite Khazzan Progress

Phase 2 of Oman’s $16bn, 10.5 tcf Khazzan tight gas project is advancing. But, with rising demand hitting gas exports, the country is looking to alternate power fuels.

Oman’s state utility OPWP has asked independent power producer (IPP) developers to prequalify for a 750-850MW capacity power plant at Misfah, 30km from the capital Muscat.

The project is one of two IPPs, each 800-1,000MW capacity, which OPWP plans to bring online in 2021 and 2022. Although OPWP had already announced that one of the two plants would be built near Muscat, the location of the second has yet to be revealed. While almost all of Oman’s power generating capacity is gas-fired, OPWP’s request for qualification for the Misfah project does not specify a fuel. Given the Ministry of Oil and Gas’s warning that it can no longer guarantee gas supplies for new power projects, this suggests OPWP may be open to proposals based on other fuels. (CONTINUED - 916 WORDS)

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