Press Release
Marubeni and Chubu to develop a power project in Oman
July 14, 2011
Marubeni Corporation
Chubu Electric Power Co.,Inc.
Phoenix Power Company SAOC, a special purpose company of which Marubeni Corporation ("Marubeni"), Chubu Electric Power Co., Inc. ("Chubu"), Qatar Electricity and Water Company Q.S.C ("QEWC") and Multitech LLC ("Multitech") are the shareholders, have entered into various agreements, including a Power Purchase Agreement ("PPA") in connection with the Sur Independent Power Project ("Project").
The power sector in the Sultanate of Oman has been aggressively promoted since the early 1990s where ten independent power projects have been developed to date. The site for the Project is located at the Sur Industrial Estate, approximately 150km south east from Muscat on the coast of the Gulf of Oman. The Project includes the design, construction, ownership, financing, operation and maintenance of a 2,000MW gas-fired power generation facility. Oman Power and Water Procurement Company SAOC purchases power from the Project under a 15 year PPA from which a long stable income is expected for the shareholders.
The Project is the first independent power project in Oman for both Marubeni and Chubu. QEWC, of which the Qatari government has more than 40% shares, also participates in the Project as a partner. The Project brings benefit for Marubeni and Chubu in that a relation with the State of Qatar can be enhanced further through which we aim to secure stable energy resources that have become more imperative.
With the development of the Project, the total generating capacity for Marubeni amounts to 28,148MW (gross) and 8,474MW (net)and the total overseas generating capacity for Chubu amounts to 18,195MW(gross) and 3,218MW(net).