Qatar's Nebras acquires 9.75% in Phoenix Power
Qatari joint stock company, Nebras Power, signed an agreement with Qatar Electricity and Water Company (QEWC) to acquire its 9.75% stake in Phoenix Power Company
Qatari joint stock company, Nebras Power, signed an agreement with Qatar Electricity and Water Company (QEWC) to acquire its 9.75% stake in Phoenix Power Company.
The completion of the $39m (QAR142m) acquisition deal is due in January 2016.
Phoenix Power owns Sur IPP in Oman which, with the installed capacity of generating 2,000MW of electricity, is considered to be the largest power plant in the Sultanate.
The plant is managed by Phoenix Operating and Maintenance Company.
Nebras also acquired QEWC’s 15% stake in Phoenix Operating and Maintenance Company.
Established in 2014, Nebras Power is a joint venture of QEWC (60%), Qatar Petroleum International Limited (20%) and Qatar Holding (20%).
The agreement was signed by Fahad bin Hamad Al Mohannadi, managing director and general manager, QEWC, and Khalid M Jolo, CEO of Nebras Power.
Al Mohannadi said: “We hope that this project will be a qualitative addition to Nebras Power through which QEWC is seeking to expand its international investments, while QEWC focuses on investments in power generation and water desalination projects in the Qatari market.”
It is expected that the Sur IPP plant will play an important role in meeting the growing energy demand in Oman, as it generates about 28% of the total installed capacity for electrical connection system in the country.
The project agreements were signed between Oman Power and Water Procurement Company (OPWP) and Phoenix Power Company in 2011, while the commercial operation of the plant started in December 2014.
The project is selling all the electricity generated for OPWP through a long-term power purchase agreement that expires in 2029.
Other project partners are Marubeni Corporation, Chubu Electric, and Multitech company.
Al Mohannadi said that the demand for electricity and water in Qatar will continue to remain robust, which is currently growing at the rate of between 6% and 8%.
On the occasion, Khalid Jolo added: “We are exploring more investment opportunities in the MENA region, which is considered as the most attractive destination.
"We have also classified some other regions as our priority destination for investment, such as America, Southeast Asia, and some countries in African and Europe, but it doesn’t mean we intend to remain confined to these areas.”