Reuters reported that Oman has signed a contract with a consortium to build 2,000 MW power plants on the eastern tip of the Arabian Peninsula.

OPWP signed the project agreement on Wednesday with a consortium comprising Marubeni Corp, Chubu Electric Power Co, Qatar Electricity and Water Co and Multitech, of the Bahwan Engineering Company group, to build the Sur IPP.

The gas fired power plant near the town of Sur is expected to cost OMR 700 million with the first 433 MW unit expected to be online by April 2013.

State owned Oman Power and Water Procurement Company wants the first 400 MW built by summer 2013 to help meet soaring cooling demand in the industrial city.

When fully operational in April 2014, the plant will increase the small oil and gas exporter's power generation capacity from the current level of around 4,000 MW to 6,000 MW.

Marubeni and Chubu said that they were close to signing deals to build a 2,000 MW plant in Oman a month ago. Qatar Electricity and Water and Multitech is a subsidiary of Bahwan Group.

(Sourced from Reuters)