Mitsui and partners to invest $2.3 billion in Oman energy projects

Mitsui and Co. Ltd. of Japan said  Monday that it joined with Saudi Arabia's ACWA Power and Dhofar International Development and Investment Holding Co. to submit a winning $2.3 billion bid for the contract on two new energy plants in Oman.

The consortium will build two new natural gas combined cycle power plants that will comprise one of the largest power plants in the Middle East. A plant in Ibri will operate at a capacity of 1,450 megawatts (MW), while the other plant, in Sohar, will produce up to 1,700 MW, eventually accounting for as much as 30 percent of energy production in the Muscat area.

Both plants will operate under Mitsui's management for the next 15 years, in accordance to an agreement between the company and the Oman Power and Water Procurement Company.

The new contract represents Mitsui's ongoing pursuit of contracts throughout Oman. Last year the company also won bids for the Salalah-2 power project and the Liwa Plastic Industries Complex.

Mitsui is the lead investor for the new Sohar-3 project, contributing 50.1 percent of investment capital. ACWA will invest 44.9 percent, and Dhofar will bring 5 percent to the deal.