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Oman plans new firm to buy coal for power station

Muscat, May 26, 2009

Oman is setting up a company, National Purchasing Energy, to buy coal to fire the planned 1,000 MW power station at Duqm, the Oman Observer newspaper reported on Tuesday.

The non-Opec oil producer is looking for alternative fuel for its power projects because its gas production cannot meet rising demand, state-owned Oman Power and Water Procurement Company (OPWP) said in a report in March.

The country's gas demand is 13.6 million standard cubic metres per day and will increase to 20 million by 2015, according to OPWP figures.

Last year, a government official said the country was considering buying coal from South Africa to fuel its planned power stations.

Oman is developing Duqm as an industrial hub with major projects such as a port, a ship repairing yard, airport and a proposed oil refinery.

It is also building more power facilities at Barka, Sohar and Sur and there are plans to extend power capacity in the capital Muscat and Salalah.-Reuters




Tags: Oman | coal | power | plant |

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