Oman’s Musandam Power Company (MPC), a subsidiary of Oman Oil Company, is set to develop a 120 MW dual-fuel power plant in the Musandam Governorate.

The Musandam Independent Power Plant (IPP) will be largely gas-fired, with stored diesel fuel on hand to cover emergency situations or gas shortages, MPC said.  

The company announced this week that agreements on project finance, power purchase and gas sales have been signed with, respectively, Bank Muscat, Oman Power and Water Procurement Company, and Oman’s Ministry of Oil and Gas.

MPC said it had also signed an EPC contract and a 15-year service agreement with Wärtsilä Muscat.

The plant is planned for commissioning by the end of 2016. Its power will be fed to the existing grid through new 132 kV transmission lines, currently under construction.

Musandam IPP represents the first independent power project in the Governorate.

MPC’s chairman Mohammed Al-Abduwani said the project “will be able to meet the power needs of the current and upcoming projects in the Governorate of Musandam. We are also expecting that the power plant will directly benefit the local community and the people of the Governorate.”