Business | Oil & Gas
Oman eyes Gulf's first coal power station
Oman is considering building the first coal-fired Gulf power plant in the latest sign of concern about a gas supply shortage in the world's biggest oil exporting region, the Middle East Economic Digest said.
- Reuters
- Published: 23:33 January 26, 2008
Dubai: Oman is considering building the first coal-fired Gulf power plant in the latest sign of concern about a gas supply shortage in the world's biggest oil exporting region, the Middle East Economic Digest said.
Gulf states have about 30 per cent of the world's oil reserves and eight per cent of its gas, but an economic boom spurred by record crude prices is driving demand for power and water so rapidly that many are considering turning to coal imports.
Oman Power and Water Procurement Co has told consultants they may have to study the option of using coal as fuel at its next power and water project, the London-based weekly said in its latest edition, citing sources close to project.
"There is an option to do a feasibility study," the magazine quoted one source as saying.
The plant will have capacity of 700 megawatts of power and 26 million gallons a day of desalinated water, it said.
Oman needs to increase gas supplies by 48 per cent to 7.2 billion cubic metres a year by 2013 to fuel power and desalination plants, the magazine said, citing Oman Power and Water Procurement Co.
Saudi Arabia, the UAE and Bahrain are also looking at the possibility of building coal-fired power plants, industry sources said last year.
Gulf states are struggling to feed the appetite for gas because of the speed at which economic growth is driving demand.
Share this article
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
UAE companies in full force at WTM
Seventy-eight participants are from Dubai and 50 from Abu Dhabi
-
DIFC committed to high standards
Ensures an efficient process to serve the business community
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
