Wärtsilä O&M agreement extended in Oman
By Mike Brezonick12 October 2022
Wärtsilä announced that the Operations and Maintenance (O&M) agreement signed five years ago with Musandam Power Co. SAOG (MPC), a power plant owner in the Sultanate of Oman, has been extended. The three-year extension will enable the Musandam Independent Power Plant (MIPP) to continue meeting all its obligations under the Power Purchase Agreement (PPA) it has with the Musandam isolated grid authorities. There is an option to further extend the agreement by two one-year extensions, Wärtsilä said.
The Musandam isolated grid is entirely dependent on this one baseload plant. The local region is rapidly developing economically and is a popular tourist area with a high demand for electricity. The power plant is, therefore, required to be available on a 24/7 basis except for routine checks and inspections.
The extended O&M Agreement is part of the two active Wärtsilä service agreements with MPC. A 15-year service agreement was signed simultaneously with the engineering, procurement, and construction 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 reliability has enabled MPC to achieve 100% of the contracted performance guarantees under its PPA based on the service agreements with Wärtsilä.
The 146 MW facility was delivered under a full engineering, procurement and construction 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,” said Murshid Al-Yarubi, CEO, Musandam Power Co.’s CEO. “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.”
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 in the United Arab Emirates, and full operational data is analyzed to ensure optimal performance and the prevention of outages.