Rural Areas Electricity Company (Tanweer), a member of Nama Group, and the Centralised Utilities Company (Marafiq) signed a power purchase agreement on Sunday to set up a new power generation facility at Duqm. 

This power purchase agreement is for a new gas-based power generation facility at Duqm. It is is in line with Tanweer’s key strategic objective to reduce the cost of generation, in particular, diesel fuel consumption, and secure electricity capacity in the high growth area of Duqm, the company said in a press statement. 

The agreement will provide the Duqm area with a gas-based generation capacity until the OETC interlinking project is completed and Duqm is connected to the main 400kV grid.

The project will be provided a gas allocation by the Ministry of Energy and Minerals, Tanweer said in its statement. The power purchase agreement was signed by Ahmed bin Said al Harthy, acting CEO of Tanweer, and Hamed al Wehibi, general manager at Marafiq.