Muscat, Feb 13
In a major step towards enhancing regional energy integration, a key agreement was signed in Muscat on Thursday, between the Gulf Cooperation Council Interconnection Authority (GCCIA) and the Qatar Development Fund (QDF) for the financing of a direct grid connection between the GCCIA network and the Sultanate of Oman.
The signing took place under the auspices of Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals. The signing ceremony was attended by senior officials, including Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals, and Shaikh Mubarak bin Fahad al Thani, Qatar’s Ambassador to Oman.
As part of the interconnection project, two 400 kV transmission lines will be constructed over 530 km connecting Al Sila in the UAE to Ibri in Oman. It will also include two grid stations and a dynamic compensator station to enhance grid stability and capacity.
Once completed, the project will provide a transmission capacity of 1,700 MW, with a net transfer capacity of 1,200 MW. The new interconnection is expected to significantly strengthen the reliability and efficiency of power systems across the Gulf region, facilitating the seamless exchange of electricity between Oman and other GCC nations.
In his remarks, Al Aufi highlighted the strategic importance of the agreement, describing it as a vital part of efforts to integrate energy infrastructure across the Gulf.
He noted that the project aligns with broader regional goals of energy security and sustainability, underlining its contribution to the GCC’s vision for a robust, high-performing energy network.
The Minister praised the GCCIA’s leadership in interconnection projects and commended the Qatar Development Fund for financing critical infrastructure. He highlighted that the partnership will strengthen regional energy systems and create new opportunities for energy trade. Mohsin al Hadhrami called the project a key step in expanding the GCCIA’s network, which has prevented over 2,800 outages since 2009. He emphasised the need for continued modernisation to meet growing demand and ensure reliable power across the region.
Al Hadhrami stated that around $700 million will be invested in the interconnection project, enabling a 1.7 GW cross-transfer capacity between Oman and the GCC interconnection, with an effective 1.2 GW capacity.
This will boost renewable energy integration in Oman and enhance regional energy trade across the Gulf. According to Eng Ahmed al Ebrahim, CEO of GCCIA, construction of the interconnection project will begin in the second half of 2025, with commissioning expected by mid-2027. He emphasised the project’s role in addressing future energy demands and integrating renewable sources, offering long-term benefits for the region’s energy landscape.
Fahad Hamad al Sulaiti, General Manager of the Qatar Development Fund, reaffirmed the Fund’s commitment to fostering regional cooperation and supporting socio-economic development through targeted financing.
He underlined the importance of energy infrastructure in ensuring stability and growth in the Arab region. The new interconnection project is part of a broader strategy to strengthen energy ties across the Gulf, with several key expansion projects already underway.
Three landmark projects are in progress to forge stronger links with Kuwait, the UAE, and Oman, representing a combined investment exceeding $1 billion.
Al Ebrahim said “It will enable our networks to handle increasing loads and support future expansion, while also seamlessly integrating renewable energy sources like solar and wind power, aligning with the GCC’s environmental vision. Furthermore, it will significantly increase the volume of energy exchange and trade among GCC nations, opening up opportunities for electricity trade, particularly for the Sultanate, with the Republic of Iraq.”
Three landmark projects are in progress to forge stronger links with Kuwait, the UAE, and Oman, representing a combined investment exceeding $1 billion.
Al Ebrahim celebrated the productive collaboration between the Authority and the Fund, recognizing its pivotal role in financing essential infrastructure projects throughout the GCC, thereby advancing the shared vision of sustainable development.
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