DGC power plant was set up pursuant to the signing of a Concession Agreement in 2001 between the Ministry of Electricity and Water of the Government of the Sultanate of Oman and the company. Gas Turbines 1 to 6 were commissioned in May 2003. Subsequently, Gas Turbines 7 and 8, which have been in operation with the Ministry of Electricity & Water since 1995 and 1998 respectively, were taken over by the company and integrated with Gas Turbines 1 to 6 in 2007. On account of DPC restructuring, the Concession Agreement was terminated on 31st December 2013.
Consequently, DGC has signed a Power Puchase Agreement (PPA) with Oman Power and Water Procurement Company SAOC (OPWP) effective 1st January, 2014. The term of agreement shall commence on effective date determined clause 2.1 of the PPA. The term shall expire on the date which falls fifteen (15) years after Scheduled Commercial Operation Date.
Dhofar is a closed Omani joint stock company registered under the Commercial Companies Law of Oman. The Company was incorporated on 25 February 2001 and has commenced its commercial operations on 1 May 2003 (the Commercial Operation Date “COD”). As of date the establishment and operations of the company are governed by the provisions of the Concession Agreement between the Ministry of Housing Electricity and Water (MHEW), Dhofar Generating Company (DGC) dated 17 March 2001.
However based on the directive issued by Public Authority for Electricity and Water (PAEW) pursuant to the Cabinet Decision to terminate the Concession Agreement restructuring activities has been initiated. The implication on the company would be that Generation, Transmission, Distribution and Supply businesses currently undertaken by the company as a vertically integrated utility will be separated and these businesses would be regulated under the general provisions of The Law for the Regulation and Privatization of the Electricity and Regulated Water Sector (the “Sector Law”) issued by Royal Decree 78/2004 as amended by Royal Decree 59/2009. Accordingly the company will undertake regulated distribution and supply of electricity in the Salalah region.
DGC power plant is a dual fuel fired power station - Natural Gas (primary fuel) & Liquid Fuel (diesel-back up fuel). which has a total of eight gas turbines operating in Open Cycle mode. The eight Gas Turbines are of General Electric make. The power generated by the six (6) PG6581 B Gas Turbines at 11kV is stepped up to 132 kV by individual Generator Transformers connected to a double circuit 132kV transmission line via a 132kV Gas Insulated Substation (GIS) located at NPS. Each circuit of the transmission line has sufficient capacity to evacuate the entire generation capacity of NPS.
Power from the LM2500 Aerodrivative Gas Turbine (GT-7) and the 30MW PG 6561 B Gas Turbine (GT-8) is stepped up through individual 11kv/33kv generator transformers which are connected to the 33kV switchgear at the NPS substation. Power from these Gas Turbines is directly evacuated at 33kV to the industrial units in Raysut and is also used for meeting the neighboring domestic loads.
A consortium consisting of Mitsui & Co., Ltd., ACWA Power and DIDIC have acquired the existing plant as of 5 June 2015. In addition, a new 445MW CCGT power plant will constructed adjacent to the existing plant under a new 15 year Power Purchase Agreement. NOMAC Oman, a fully owned subsidiary of First National Operation & Maintenance Co. Ltd, KSA, will be responsible for the operations and maintenance of the entire power plant.