Qatar Fund Seals Finance Deal for Oman Grid Project
Deal News | Feb 17, 2025 | Zawya
The Gulf Cooperation Council Interconnection Authority (GCCIA) has entered into a landmark financing agreement with the Qatar Development Fund (QDF) to initiate a transformative grid connection project linking the GCCIA network with Oman. This project represents a significant strategic effort to integrate Gulf power grids, enhance energy network connectivity, and improve the reliability and sustainability of electricity systems in the region. The initiative includes constructing two 400 kV overhead transmission lines and substations equipped with advanced systems to ensure reliability and safety. The project, set to begin in the second half of 2025 with commissioning in 2027, will provide a transmission capacity of 1,700 MW. The partnership aims to reduce the need for new power plants, facilitate electricity exchange, and significantly cut carbon emissions. Additionally, this endeavor is poised to strengthen regional power grid resilience and pave the way for integrated GCC energy markets.
Sectors
- Energy Infrastructure
- Renewable Energy
Geography
- Gulf Cooperation Council (GCC) – The GCC is the focus region of the article, as it discusses the integration of power grids in the Gulf, specifically linking the region's network with Oman.
- Qatar – Qatar is involved in the article through the Qatar Development Fund, which is financing the project.
- Oman – Oman is directly involved in the project as one of the primary locations where the new electrical infrastructure will be developed.
Industry
- Energy Infrastructure – The article discusses a major project aimed at improving the electricity infrastructure by connecting Oman with the GCC power network through new transmission lines and substations.
- Renewable Energy – This venture aligns with sustainable development goals and plans to incorporate renewable energy sources like solar and wind, reflecting the sector's growing commitment to eco-friendly practices.
Financials
- 1,700 MW – Total transmission capacity provided by the grid interconnection project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gulf Cooperation Council Interconnection Authority (GCCIA) | Implementor of the grid project | Companies | GCCIA is responsible for the construction and management of the grid interconnection project. |
| Qatar Development Fund (QDF) | Financier of the project | Companies | QDF is providing the necessary funds for the project to facilitate the grid connection between GCC and Oman. |
| Ahmed Ali Al Ebrahim | CEO of GCCIA | People | He signed the financing agreement on behalf of GCCIA. |
| Fahad Hamad Al Sulaiti | Director General of QDF | People | He signed the financing agreement on behalf of QDF. |
| Mohsin Al Hadhrami | Undersecretary of the Ministry of Energy and Minerals and Chairman of the Board of Directors of GCCIA | People | He was a key figure present at the signing ceremony. |
| Sheikh Mubarak bin Fahad Al Thani | Ambassador of Qatar to Oman | People | Qatari ambassador who attended the signing ceremony. |