The Challenge

The Client was preparing a bid for Independent Power Projects (IPP) in the Main Interconnected System in Oman. If successful, the Client would receive a 15 year licence to develop, finance, design, engineer, construct, own, operate and maintain two gas-fired power stations. IPA was commissioned to provide due diligence advisory services to assist with the bid including a gas market study to assess the mid/long term security of gas supply. allenge

Our Solution

IPA used our proprietary ECLIPSE modelling platform to assess the residual economic value of the projects being tendered following the termination of their 15 year Power Purchase Agreement. We also developed a bespoke economic model of the Oman Main Interconnected System to simulate future electricity generation, over the period to 2050 and provide detailed forecasts of post-PPA cash flow.

IPA assessed the availability of domestic natural gas and imports for the future power projects. We assessed the indigenous gas supplies and demand for both power, industry and commercial usage, and commentary on the regional and domestic gas pricing trends.  The gas supply analysis included an assessment of the indigenous gas field production profiles, development plans and proposed gas imports by pipelines. The gas demand forecast considers the power mix and future demand scenarios, plus industrial and commercial sectors growth, plus contractual export volumes from the existing LNG facilities. 

The Omani gas market study provided clarity on the security of supply issues and the dynamics of the domestic and regional gas markets that could impact on the power market.