Welcome to Phoenix Power, owner of Oman's largest power plant.
The Sur IPP consists of a gas-fired combined cycle power facility. The power facility integrates five units of gas turbines (Siemens AG SGT5-4000F) with five triple pressure heat recovery steam generators (Nooter Eriksen) and three steam turbines (Fuji Electric) in a combined cycle configuration to achieve optimal energy production efficiency.
The plant is designed for black start operation by means of black start diesel generators which are capable of starting the plant from no power.
Capacity: Capacity of a plant is defined as the total Megawatts (MW), which can be delivered by the power plant under specific environmental conditions (site reference conditions). The original contractual capacity of Phoenix Power under the PPA is c. 2,000 MW. The actual net capacity at reference conditions in the original performance test was above 2,000 MW. This capacity is expected to decline over the period of PPA due to normal degradation of plant but is expected to remain above c.1,981.8 MW and meet contractual requirements under the PPA.
Availability: Availability is the amount of time the plant is technically capable of generating power as per specifications. As per the project agreements, Phoenix Power shall be available for
100% of time in summer and 85% of the time in winter.
The plant is operated and maintained throughout the term of the PPA by POMCo. POMCo is primarily responsible for plant safety, environmental compliance, availability, efficiency, power output capacities and operational cost control. POMCo operates the plant in accordance with applicable environmental laws and is responsible for operating the plant efficiently, whilst ensuring the correct spare parts are available, and that the staff is properly qualified and trained. The O&M Agreement contains provisions for incentives and penalties, at ordinary arms’ length commercial terms, to achievement of certain availability and heat rate targets.
Key Project Agreements
Power Purchase Agreement
Power Purchase Agreement (PPA) sets out the terms of generation and supply of power to the Main Interconnected System for 15 years ending on March 31, 2029. PPA was signed with the sole procurer of power in the Sultanate, Oman Power and Water Company (OPWP), a wholly-owned subsidiary of the Government of Oman. Under the terms of the PPA, Phoenix Power has the right and obligation to generate electricity under a commercial arrangement. Ownership of the plant will remain with Phoenix Power after the current PPA ends in 2029.
Natural Gas Sales Agreement
Natural Gas Sales Agreement (NGSA) with the Ministry of Oil & Gas (MOG) provides for the purchase of natural gas from MOG for the period of 15 years at a pre-determined price. The NGSA is co-terminus with the PPA and sets out the terms of the purchase of this gas from MOG under a commercial arrangement. The NGSA term will automatically be extended to reflect any extensions to the term of the PPA. In accordance with the NGSA, natural gas will be supplied up to the agreed gas delivery point of the plant. The fuel charge element of the PPA allows a full pass-through of the gas cost to the extent that electricity is generated within the plant efficiency as contracted.
Usufruct Agreement with the Public Establishment for Industrial Estates (PEIE) grants usufruct rights over the project site for 25 years. The company pays an annual consideration of Bzs 250 per square metre upto the fourth anniversary of the effective date, and Bzs 500 per square metre until the end of the initial term of 25 years. This agreement may be renewed for another term of 25 years at the option of the company.
Operation & Maintenance Agreement (OMA)
Operation & Maintenance Agreement (OMA) is entered with Phoenix Operation and Maintenance Company LLC (POMCo), a company incorporated in the Sultanate of Oman, for the operations and maintenance of the plant. The agreement is valid until 31 March, 2029 for an agreed pre-determined Operator Fee.
Electrical Connection Agreement (ECA)
Electrical Connection Agreement (ECA) is entered with Oman Electricity Transmission Company (OETC) for a 30-year initial term. It sets out the contractual and operating framework between the Grid Operator and the Grid System user (like Phoenix Power).
- September 2010 Request for proposal issued by OPWP
- March 2011 Bid submission
- June 2011 Declaration as “preferred bidder”
- July 2011 Execution of PPA
- November 2011 Financial Close (wet)
- December 2014 Commercial Operation Date (COD) achieved
- March 2029 Expiry of PPA
Health, Safety & Environment
Phoenix Power manages HSE responsibilities as its first priority. We are committed to continuously improving our HSE performance and managing HSE risks associated with our activities, products and services.
The HSE policy at Phoenix Power commits to excellence in health and safety performance and lays down the management system, rules and regulations for enforcement of the policies. Phoenix Power has HSE policies in place to promote compliance with all legal health and safety requirements, and to provide a safe work place for its employees, visitors, contractors and members of the public. To get an external accreditation for its HSE policy is a strategic and a stated goal of the Company. To the extent possible, it aims to prevent accidents, injuries, occupational illnesses and pollution as well as to conserve natural resources.
The Sur Independent Power Project is designed to comply in all respects with all applicable environmental regulations and World Bank guidelines. Environmental regulations in Oman specify the performance requirements of an industrial plant with reference to air, water, hazardous materials, waste, dredging and noise. Air emission standards in Oman are based on the National Ambient Air Quality Standards of the USA. Since the COD, the plant has not suffered any material environmental incidents, nor has Phoenix Power been required to report any such incidents to the MECA. Our Operator (POMCo) sends out monthly environmental monitoring reports to MECA for the Plant.
The Sur IPP was awarded the 2011 Power Deal of the Year in the Middle East & Africa at the PFI Awards 2011. The PFI Awards are part of the Thomson Reuters Awards for Excellence, recognising corporate and individual success in the global financial industry.