ENGIE has successfully revived the Sohar 1 Project in Oman with the signing of a new Power Purchase Agreement (PPA) in October 2024, following the expiration of the original PPA in May 2022. The Sohar 1 Power and Desalination Plant, located in Oman, includes a 585 MW Combined Cycle Gas Turbine (CCGT) facility and 150,000 m³/day of multi-stage flash desalination capacity. The new PPA enables the plant to operate at a competitive tariff, securing 405 MW of Open Cycle Gas Turbine (OCGT) capacity.

Background and History

The Sohar 1 Power and Desalination Plant has been maintained in preservation mode by ENGIE STOMO (SUEZ TRACTEBEL OPERATION & MAINTENANCE OMAN) L.L.C. since the expiration of the original PPA. During this time, the plant underwent a successful debt restructuring process, which ultimately led to the signing of the new PPA. The plant's original configuration included a 585 MW CCGT facility, but the new agreement focuses on 405 MW of OCGT capacity.

This adjustment allows for a more efficient and cost-effective operation. The debt restructuring process was crucial in securing a competitive tariff for the plant's operation. By renegotiating the terms of the debt, ENGIE STOMO was able to achieve a more favorable financial framework, enabling the signing of the new PPA. This development marks a significant milestone in the project's history, as it ensures the long-term viability of the Sohar 1 Power and Desalination Plant.

Commercial Operation and Capacity

The Sohar 1 Power and Desalination Plant achieved Commercial Operation Date (COD) on March 28, 2025, marking the official commencement of its operations under the new PPA. With a capacity of 405 MW of OCGT, the plant is well-positioned to meet Oman's growing energy demands. The plant's desalination component also plays a critical role in providing fresh water to the region, with a capacity of 150,000 m³/day.

The plant's operations are expected to have a positive impact on the local economy, creating jobs and stimulating growth. The reliable supply of electricity and fresh water will also support various industries, including manufacturing, agriculture, and tourism. As Oman continues to develop its infrastructure and economy, the Sohar 1 Power and Desalination Plant will play a vital role in supporting these efforts.

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