Wärtsilä, a global leader in innovative technologies and lifecycle solutions for the marine and energy markets, said it has extended the operations and maintenance (O&M) agreement with Oman's Musandam Power Company (MPC), for another three years.
A technology major headquartered in Helsinki, Finland, Wärtsilä had signed an O&M agreement five years ago with MPC.
A 15-year long-term 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.
According to Wärtsilä, the extended O&M agreement is part of the two active Wärtsilä service agreements with MPC.
This 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. It will also ensure a reliable electricity supply for local businesses.
The extension was signed and booked in Wärtsilä’s order intake in Q2 2022, stated the Finnish group, adding that there is an option to further extend the agreement by two one-year extensions.
On its five years of O&M service, Wärtsilä said the plant’s exceptional reliability had enabled MPC to achieve 100% of the contracted performance guarantees under its PPA.
This reliability has been achieved despite the challenging ambient conditions with summer temperatures reaching 50 degrees C, when the demand for electricity is at its highest, it stated.
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.
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, it added.
Alexandre Eykerman, Director, Middle East, Wärtsilä Energy, said the initial five-year agreement was successfully completed with good cooperation from MPC.
"We have achieved 100% of the contracted performance guarantees towards MPC. We are very proud to know that our good cooperation has enabled Musandam Independent Power Plant to meet all performance guarantees under the PPA with the power purchaser Oman Power and Water Procurement Company during this period," observed Eykerman.
Musandam Power Company CEO Murshid Al Yarubi said: "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," he added.
