Commencement of implementation of the direct Gulf electrical interconnection project with the Sultanate of Oman

Muscat, 1st February / WAM / The Gulf Electricity Interconnection Authority announced today the start of implementation of the direct electrical interconnection project between the authority’s network and the network of the Sultanate of Oman, in a strategic step that represents a qualitative leap in the process of Gulf integration in the energy sector and regional infrastructure.

The announcement ceremony was attended by His Excellency Sheikh Mubarak bin Fahad Al Thani, Ambassador of the State of Qatar to the Sultanate of Oman, His Excellency Eng. Yacoub Al Kiyoumi, Vice Chairman of the Board of Directors of the Gulf Electricity Interconnection Authority, His Excellency Eng. Ahmed bin Ali Al Ibrahim, CEO of the Authority, His Excellency Fahd bin Hamad Al Sulaiti, Director General of the Qatar Fund for Development, His Excellency Abdul Wahed bin Mohammed Al Morshedi, CEO of Sohar International Bank, along with representatives of Gulf companies operating in the energy sector in the Sultanate.

His Excellency Engineer Mohsen bin Hamad Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals – Sultanate of Oman, Chairman of the Board of Directors of the Gulf Electrical Interconnection Authority, pointed out that the project is not just a technical expansion of the network, but rather an extension of the vision of the leaders of the Gulf Cooperation Council countries who made electrical interconnection one of the pillars of Gulf integration, believing that energy security is a pillar of the stability of countries, the growth of their economies, and the sustainability of their development, stressing that “the Gulf electrical interconnection has proven over more than 25 years its success in enhancing the reliability of networks and achieving significant economic savings.” to the Council countries.

He added that the direct connection with the Sultanate of Oman enhances the depth of the network and its operational flexibility, and embodies a distinguished model of Gulf partnership in financing vital infrastructure projects, in a way that supports the energy transition and sustainable development.

For his part, His Excellency Engineer Ahmed bin Ali Al-Ibrahim, CEO of the Gulf Electricity Interconnection Authority, explained that the project is one of the largest expansion projects in the history of the Interconnection Authority, and aims to enhance the ability of the Gulf network to accommodate the rapid growth in demand for electricity, given the expansion of internal networks that the Gulf Cooperation Council countries are witnessing, major changes in electrical loads, an increase in electric power generation, support for renewable energy projects, and raising the networks’ readiness to face emergency situations.

He stressed that the project will achieve significant operational and economic benefits, enhance the reliability of Gulf electrical networks in light of the shift towards renewable energy, increase the ability to exchange electrical energy between member states, and embody the authority’s ability to transform the strategic vision of the leaders of the GCC countries into executive projects with a tangible impact.

Al-Ibrahim revealed that the total cost of the project amounts to about 700 million US dollars, and it is financed through Gulf financing partnerships, as the Authority had previously signed financing agreements with the Qatar Fund for Development and Sohar International Bank to provide financing for the project amounting to 600 million US dollars, as a contribution to financing the direct electrical interconnection project with the Sultanate of Oman.

His Excellency Fahd bin Hamad Al Sulaiti, Director General of the Qatar Fund for Development, stressed that the financing reflects the Fund’s commitment to supporting vital infrastructure projects in the energy sector, as it is a pillar for enhancing regional integration, supporting sustainable development, and achieving economic and social stability in the region.

He added that the project embodies the importance of regional cooperation and Gulf partnerships in supporting strategic energy projects, and contributes to building a more flexible and sustainable electricity system in the region.

For his part, Abdul Wahed bin Mohammed Al Morshedi, CEO of Sohar International Bank, explained that the bank’s participation in financing the vital project comes from its continued commitment to supporting infrastructure projects that contribute to achieving Oman Vision 2040 and enhance Gulf economic integration.

He added that the project represents an important pillar in the authority’s strategy to connect electricity networks in the Gulf Cooperation Council countries and enable them to face challenges, including absorbing renewable energy sources and reducing carbon emissions.

The project includes the construction of two 400-kilovolt electrical lines, with a length of approximately 530 kilometers, linking the Authority’s commodities station in the United Arab Emirates and the Ibri station that the Authority will establish in the Sultanate of Oman, in addition to the construction of two main 400-kilovolt transmission stations in Ibri and Baynounah, equipped with the latest protection, control and communication systems in accordance with international best practices.

The project also includes the establishment of a dynamic compensation station (STATCOM) that increases the stability of the network and increases transmission capacity, providing a total capacity of up to 1,600 megawatts, enhancing the flexibility of the Gulf network and raising the Sultanate’s ability to exchange energy with high efficiency with the associated Gulf countries.

From an operational perspective, the project will contribute to supporting the reliability of electrical networks, raising support capabilities during emergency situations, and supporting the integration of renewable and new energy into Gulf networks, which will achieve significant economic and operational savings.

The direct interconnection project with the Sultanate of Oman is a strategic step to enhance the integration of Gulf and regional energy networks, increase the reliability and sustainability of electricity systems, and support the goals of the Gulf Cooperation Council countries in the energy transition and reducing carbon emissions, thus consolidating the position of the Gulf electrical interconnection as a global model for regional integration in the energy sector.

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