Muscat – Finland-based technology group Wärtsilä has extended the operations and maintenance (O&M) agreement signed five years ago with Musandam Power Company (MPC), the owner of the independent power plant (IPP) in Musandam.
The three-year contract extension will enable the Musandam IPP to continue meeting all its obligations under the power purchase agreement (PPA) it has with the Musandam isolated grid authorities, Wärtsilä said in a statement.
‘It will also ensure a reliable electricity supply for local businesses. The extension was signed and booked in Wärtsilä’s order intake in the second quarter of this year. There is an option to further extend the agreement by two one-year extensions,’ the company added.
The Musandam isolated grid is entirely dependent on the Musdandam IPP. The local region is rapidly developing economically and is a popular tourist area with a high demand for electricity.
The extended O&M agreement is part of the two active Wärtsilä service agreements with MPC. A 15-year long term service agreement was signed simultaneously with the engineering, procurement, and construction (EPC) contract in 2014, which has been complemented with Wärtsilä taking responsibility for operating and maintaining the facility from 2017.
During its five years of operation and maintenance by Wärtsilä, the plant’s exceptional reliability has enabled MPC to achieve 100 per cent of the contracted performance guarantees under its PPA based on the service agreements with Wärtsilä, the company said.
The 146MW facility was delivered under a full EPC contract by Wärtsilä in 2017. It operates with 15 Wärtsilä 34DF engines operating on natural gas as the primary fuel.
“Electricity demand is expected to grow during the period of the PPA, and a secure supply is essential for meeting Oman’s stringent grid code. The Wärtsilä plant provides this reliability and availability, thanks both to the efficiency of the engines and their professional operation and maintenance support. We value Wärtsilä as a partner we can rely on and trust,” Murshid al Yarubi, CEO of Musandam Power Company, said.
“The initial five-year agreement was successfully completed with good cooperation between Musandam Power Company and Wärtsilä. We have achieved 100 per cent of the contracted performance guarantees towards MPC. We are very proud to know that our good cooperation has enabled Musandam IPP to meet all performance guarantees under the PPA,” said Alexandre Eykerman, director – Middle East, Wärtsilä Energy.
Wärtsilä also provides additional services for MPC, including plant security. Remote monitoring of the equipment is carried out from Wärtsilä’s Expertise Centre in Dubai and full operational data is analysed to ensure optimal performance and the prevention of outages.