Oman moves to limit use of gas in power plants

State-owned Oman Power and Water Procurement Company (OPWP) said it will propose several

alternative fuel options for future power and desalination plants in case the Sultanate’s government

is unable to commit natural gas for utility projects.

These options include discussion with government about the feasibility of importing natural gas for

the use in power plants, new plants based on a fuel other than gas, use of optional arrangements

included in the Barka III and Sohar II for using liquid fuel instead of gas.

“The Ministry of Oil and Gas has indicated that future gas supply is constrained, but with assurances

that the power sector has a priority for future gas allocations. While Ministry of Oil and Gas has

committed to supplying gas for the planned capacity additions in Salalah, Ibri and Sohar, gas

availability for later plants is not assured,” said a seven-year outlook for power and water demand,

released by OPWP.

The primary fuel resource for power generation and associated water production in the main

interconnected system in Oman is natural gas, supplied to power and desalination plants by the

Ministry of Oil and Gas.

The OPWP consults Ministry of Oil and Gas on a regular basis in order to confirm the future

availability of gas for power generation (and associated water production) and to coordinate

planning, reported the Times of Oman

Oman’s peak average annual power demand growth for the next seven years within the areas of

main inter-connected system (MIS) is projected to be 8 per cent, rising from 5,565 megawatt (MW)

in 2015 to 9,529 MW in 2022, said the OPWP report.

Total gas consumption at the main power and desalination plants in 2015 was about 7.4 billion

standard cubic meters (Sm3), equivalent to 20.2 million Sm3/d, about 4 per cent more than in 2014.

The peak daily gas consumption in 2015 was 27.7 million Sm3, slightly lower than in 2014.

“The modest 4 per cent growth in gas requirements contrasts with a significant 13 per cent increase

in electricity generation over the same period.”

Overall, fuel consumption is expected to increase at an average rate of about 4 per cent per annum

over the next seven years. Under the low case demand scenario, fuel consumption increases at an

average of 1 per cent per year, whilst in the high case demand scenario, it grows at an average rate

of 7 per cent per annum. In each of the three scenarios, the rate of growth in fuel consumption is

well below that of electricity demand.

NGS INDIA