Muscat: In conjunction with the development of the Marsa LNG bunkering project at SOHAR Port and Freezone, Oman’s authorities are preparing the groundwork for the procurement of an associated Solar Independent Power Project (IPP) designed to support the decarbonisation of the LNG facility.
The so-called Marsa Solar IPP, with a proposed generation capacity of around 280 MW, is widely anticipated to be located in a suitable solar-rich part of Al Dakhiliyah Governorate in proximity to transmission infrastructure operated by the Oman Electricity Transmission Company (OETC).
Recently, Nama Power and Water Procurement Company (PWP) — the single buyer of all electricity and water output in Oman — invited qualified consultancy firms to bid for a contract to provide project management and supervisory consultancy services linked to the implementation of the Marsa Solar IPP. Final submissions are due on July 26, with the successful bidder responsible for overseeing project execution across the construction, commissioning and testing phases.
When operational, tentatively by the first half of 2028, the new solar IPP will support the electrification of the 1 million tonnes per annum (mtpa) Marsa LNG bunkering project, which is also on track for completion and commissioning around the same timeframe.
The Marsa LNG project is being developed by a consortium comprising TotalEnergies (80 per cent) and OQ Exploration & Production (OQEP) (20 per cent). It is the first LNG-based bunkering facility of its kind in the Middle East, with an estimated investment of around $1.6 billion.
The Marsa Solar IPP will be developed under a separate structure by a partnership between TotalEnergies and OQ Alternative Energy (OQAE), the designated national renewable energy champion.
The partnership is already developing around 300 MW of renewable energy projects, the output of which is contracted to Petroleum Development Oman (PDO) under long-term Power Purchase Agreements. These include the North Solar project (100 MW) in Saih Nihayda in northern Oman; and the Riyah 1 and Riyah 2 wind projects (each 100 MW) located in the Amin and West Nimr fields in southern Oman.
According to TotalEnergies, Marsa LNG will consume around 44% of the energy produced by the Marsa Solar IPP during daytime hours through power wheeling arrangements with OETC, utilising its grid network for electricity transmission. Night-time electricity demand will be supplied from the OETC grid via the same dedicated connection. As the solar plant is expected to generate the full energy needs of the LNG facility during daylight hours, approximately 56% of daytime output will be exported to the Omani spot market.
Powered entirely by clean energy, Marsa LNG is set to be one of the lowest greenhouse gas (GHG) emission intensity LNG plants ever built globally, with a GHG intensity of below 3 kg CO₂e/boe, compared to the global average of around 35 kg CO₂e/boe.
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