Al-Duqum Independent Water and Power Project

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The Al-Duqum Independent Water and Power Project (Duqm IWPP power station) is a proposed 1,200-megawatt (MW) power station in Duqm, Oman.

Location

The map below shows Duqum, the approximate location where the plant would be built.

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Background

The project is a proposed 1,000 megawatt (MW) coal-fired power station associated with a desalination plant.[1] It has been sponsored by Oman Power and Water Procurement Company (OPWP), a wholly-owned subsidiary of the Electricity Holding Company (EHC), which in turn is 100% owned by the Government of the Sultanate of Oman.[2]

The technical advisory contract has been awarded to the Australian company, WorleyParsons, and the financial advisory contract has gone to KPMG. Al-Duqum IWPP will be the first coal-fired power plant in the country, and one of the first in the Gulf region. The Al-Duqum IWPP is estimated to cost US$2 billion to build, and is proposed that it would come online in 2015.[3]

OPWP stated that coal is the preferred option, because it is an alternative to rising gas prices and a means to diversifying fuel sources within the power generation supply. The company is aiming to issue a request for a proposal from a private investor in the second quarter of 2010 and finalize a contract by the end of 2010.[1]

Plans for a coal plant were scrapped in 2011, due to environmental concerns.[4]

However, in June 2017 OPWP said it was exploring an Independent Power Project (IPP) of a capacity ranging from 1,500 to 2,500 MW that would be powered by coal. The selected consultants will study and recommend suitable locations for the proposed coal plant. OPWP aims for a March 2018 completion of all studies linked to future power generation.[5]

In August 2017 it was reported an engineering, procurement and construction (EPC) contract to build Duqm's first large-scale natural gas-fired power-cum-water desalination project was expected to be awarded in the first quarter of 2018. It also said a Chinese consortium was considering a 300MW coal-fired power plant in Duqm, and that Hebei Electric Power Design and Research and Ningxia Electric Power Design Institute plan to conduct an environmental impact assessment study for getting environment clearance from the Oman government for a US$406 million-coal-fired power project in the Duqm free zone.[6]

In November 2017 it was reported that Oman’s Power and Water Procurement Company had picked Gowling WLG to provide legal advisory on an 1,800MW coal-fired IPP project in Duqm.[7]

In April 2018, Oman Power and Water Procurement Company invited tender bids for a 1,200 MW coal plant in Duqm.[8][9]

In January 2019 it was reported the project was awaiting final clearance from the government before the procurement process would begin. Unit 1 is planned for 2024 and unit 2 for 2025.[10]

According to OPWP's 7-Year Outlook Statement spanning the 2019-2025 timeframe, if the coal plant does not get the government’s green-light before end-2019, OPWP may proceed instead with a 600 MW Concentrated Solar Power (CSP) project.[11]

Project Details

  • Sponsor: Oman Power and Water Procurement Company
  • Parent company: TBD
  • Developer:
  • Location: Duqm, Al Wusta, Oman
  • Coordinates: 19.661667, 57.704722 (approximate)
  • Status: Announced
  • Capacity: 1,200 MW (Units 1 & 2: 600 MW)
  • Type: Subcritical
  • Start date: 2024-2025
  • Coal Type:
  • Coal Source:
  • Source of financing:
  • Permits and applications:

Articles and resources

References

  1. 1.0 1.1 Oman Power and Water Procurement Company, "Al-Duqum IWPP", Oman Power and Water Procurement Company website, accessed September 2009.
  2. Oman Power and Water Procurement Company, "Welcome to Oman PWP", Oman Power and Water Procurement Company website, accessed September 2009.
  3. "Oman's First Coal-Fired Power Plant On Track", Business Monitor Online, September 17, 2009.
  4. "Oman sees coal as potential fuel resource," Commodity News, 23/04/2015
  5. "Oman weighs 1,500 - 2,500 MW coal power project," Oman Daily Observer, June 19, 2017
  6. "Duqm's first large scale power project expected to be awarded early 2018," Business Gateways, Aug 1, 2017
  7. "Oman moves ahead with its 1,800MW coal-fired project, picks IPP," PK On Web, Nov 1, 2017
  8. "Oman's first coal-fired power plant to be established in Duqm," Muscat Daily, April 09, 2018
  9. "Request for qualification leading to the development of a new clean coal independent power project (IPP) at Duqm, Sultanate of Oman," Oman Power and Water Procurement Company SAOC, accessed August 14, 2018
  10. "Govt nod awaited for Oman’s clean coal power project," Trade Arabia, January 2, 2019
  11. "Oman mulls thermal concentrated solar power project," reve, July 16, 2019

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External resources