Marafiq — the Centralised Utilities Company (CUC) serving the Special Economic Zone at Duqm (SEZAD) — is set to invest in a new industrial water desalination plant to meet the water requirements of Singapore-based Meranti Green Steel's planned green iron project in Al Duqm.
The investment follows the signing of a Heads of Terms agreement between the two companies earlier this week under which Marafiq will provide a continuous, high-quality supply of industrial water for Meranti's upcoming direct reduced iron (DRI) and hot briquetted iron (HBI) plant.
Under the agreement, Marafiq will develop and finance a new desalination facility in the Duqm Industrial Zone, own and operate the associated water infrastructure, and manage the pipeline, pumping and metering systems delivering water directly to the Meranti site.
"Under this agreement, Marafiq will develop and finance a brand-new desalination plant in the Duqm Industrial Zone, own and operate the critical water infrastructure network and manage the pipeline, pumping and metering systems directly to the Meranti site", said Bassem Shabaka, Manager, Water & Wastewater Engineering, Marafiq, in a post.
A subsidiary of OQ Group, Marafiq is Oman's integrated utilities provider for SEZAD, operating under a 25-year Centralised Utilities Services Agreement with the Public Authority for Special Economic Zones and Free Zones (OPAZ). The agreement grants the company the exclusive mandate to generate, transmit and distribute a comprehensive range of utility services across the economic zone.
The company provides a centralised utility platform that enables industrial investors to source essential services from a single provider rather than investing in standalone infrastructure. Its capabilities include electricity generation and transmission, potable and industrial water production and distribution, desalination, steam supply, wastewater management, industrial gases and waste management. Among its flagship assets are the 326 MW Duqm Integrated Power and Water Plant (DIPWP), an 80-km 132-kV transmission network serving Ras Markaz and the potable water distribution network for SEZAD.
Meranti Green Steel is developing a low-carbon DRI/HBI facility with an initial production capacity of 2.5 million tonnes per annum, expandable to 5 million tonnes in a second phase. The project has progressed through front-end engineering and design (FEED), secured conditional natural gas allocation and long-term offtake agreements for its first production module, with commissioning targeted for mid-2029.
Green iron projects are among the most utility-intensive industrial developments, requiring large volumes of desalinated water, reliable supplies of natural gas and, over time, green hydrogen, together with abundant renewable electricity, industrial gases and extensive utility infrastructure.
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