KHASAB, Nov 13 – Coinciding with the 47th National Day celebrations, two major projects — Musandam Gas Plant (MGP) and Musandam Power Company (MPC) — were dedicated to the nation by HH Sayyid Mansour bin Majid al Said in Bukha and Khasab, on Monday.
MGP and MPC are part of the Oman Oil Company Exploration and Production LLC (OOCEP), a wholly-owned subsidiary of Oman Oil Company (OOC) and Oman Gas Company SAOC (OGC).
The two projects, considered milestones in the nation’s Renaissance march, will play a prime role in delivering sustainable energy to the Governorate of Musandam and meet its current and future demand for power.
MPC is set up by a consortium comprising OOC (70 per cent stake) and LG International Corporation (30 per cent stake). The power plant uses natural gas as its primary fuel, with light fuel oil as a back-up to ensure uninterrupted power.
It can operate in extreme conditions, including high humidity and temperatures of up to 50 degrees Celsius.
MPC has signed a Power Purchase Agreement (PPA) with Oman Power and Water Procurement Company (OPWP), under which OPWP will purchase electricity produced by the plant for 15 years.
MPC is an affiliate of Oman Gas Company. The 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.
MGP is established by OOCEP, OOC’s auxiliary firm which is responsible for managing investments in exploration and production sector.
The project included the construction of sub-sea pipelines, oil and gas storage depots and export platforms.
The plant’s production capacity is estimated at 45 million cubic feet of gas, 20,000 barrels of exportable condensates a day and 80 tonnes of liquefied petroleum gas each day.
“The opening of these two facilities is an important energy boost for sustainable development of Musandam,” said HH Sayyid Mansoor.
“I am delighted to witness this important moment that reflects rapid development of the Sultanate and would like to extend my congratulations to the peopleof Musandam and Oman Oil Company for this accomplishment,” he added.
The feed gas required 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 are transported from the offshore platform to MGP through a new sub-sea pipeline.
A part of the natural gas output from the plant is channelled to MPC under a Sale and Purchase Agreement with Ministry of Oil and Gas, whilst the excess gas will be exported.
“The inauguration of these two projects aligns with the strategic plans of the Sultanate to support the economy, contribute to expanding the energy sector’s activities and establishing key power industries throughout the country,” said Eng Isam bin Saud al Zadjali, CEO of OOC.
“These two projects are expected to encourage future energy-related ventures in Musandam through domestic and foreign investments as well as broaden economic activities and industries.”
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.
The event was attended by a large gathering comprising their Highnesses, ministerial representatives and other delegates.