Trade Arabia reported that Oman’s Musandam Power Company (MPC) has signed a long-term power purchase deal with Oman Power and Water Procurement Company and made a Natural Gas Sales Agreement with the Ministry of Oil and Gas to supply and sell natural gas to MPC.

MPC is a majority-owned subsidiary of the Oman Oil Company (OOC) and is also developing a new dual fuel Independent Power Plant as part of a sustainable energy project for the Musandam Governorate. The company will use natural gas for stable power generation and store diesel fuel for emergencies.

In related news, Zawya said that thanks to rising electricity demands in Oman the country could face a power deficit of 2,727MW by 2020. This was based on a report compiled by Oman Power Water Procurement (OPWP).

Rising demand has resulted from industrial growth, a growing population, housing and government investments in infrastructure projects, all exacerbated by subsidized prices and higher wages.