Saudi ACWA Power Wins Water Desalination Project in Oman

Saudi ACWA Power Wins Water Desalination Project in Oman
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Saudi ACWA Power Wins Water Desalination Project in Oman

Saudi ACWA Power Wins Water Desalination Project in Oman

A consortium led by Saudi-based ACWA Power has been awarded the Salalah Independent Water Project by the Oman Power and Water Procurement Company.

The plant will be located in Salalah, Dhofar region and will have a capacity to generate 25 million gallons per day of desalinated water using reverse osmosis technology.

The consortium also includes Veolia, Veolia Middle East and Dhofar International Development & Investment Holding Co (DIDIC), a statement said on Monday.

The project is being procured by OPWP under a build-own-operate framework on the back of a 20 year water purchase agreement, it added.

Dhofar Desalination Company, the project company, will be owned by ACWA Power, Veolia Middle East and DIDIC.

Managing Director at ACWA Power Thamer Al Sharhan said: “Oman is a strategic country for ACWA Power – our portfolio of six plants can generate over 4,300 MW of power and 42 million gallons per day of desalinated water.”

“ACWA Power is committed to ensuring the success of this project while creating real value for the local communities," Sharhan added, stating that demand for water in Oman is expected to rise by about six percent per annum over the next seven years.

Paddy Padmanathan, president and CEO of ACWA Power, said: “Water is the most vital commodity for human life as well as a necessity for all enterprises. We are delighted to have been awarded this project and the opportunity to continue supporting Oman as a reliable supplier of desalinated water and power.”

The engineering, procurement, and construction of the plant will be handled by a consortium of Fisia Italimpianti and Abeinsa Infraestructuras Medioambiente while the operations and maintenance of the plant will be undertaken by a consortium of Veolia Middle East, NOMAC Oman and DIDIC.



Oil Trims Gains on Dollar Strength, Tight Supplies Provide Support

FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
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Oil Trims Gains on Dollar Strength, Tight Supplies Provide Support

FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo

Oil prices trimmed earlier gains on Wednesday as the dollar strengthened but continued to find support from a tightening of supplies from Russia and other OPEC members and a drop in US crude stocks.

Brent crude was up 21 cents, or 0.27%, at $77.26 a barrel at 1424 GMT. US West Texas Intermediate crude climbed 27 cents, or 0.36%, to $74.52.

Both benchmarks had risen more than 1% earlier in the session, but pared gains on a strengthening US dollar.

"Crude oil took a minor tumble in response to a strengthening dollar following news reports that Trump is considering declaring a national economic emergency to provide legal ground for universal tariffs," added Ole Hansen, analyst at Saxo Bank.

A stronger dollar makes oil more expensive for holders of other currencies.

"The drop (in oil prices) seems to be driven by a general shift in risk sentiment with European equity markets falling and the USD getting stronger," said UBS analyst Giovanni Staunovo.

Oil output from the Organization of the Petroleum Exporting Countries fell in December after two months of increases, a Reuters survey showed.

In Russia, oil output averaged 8.971 million barrels a day in December, below the country's target, Bloomberg reported citing the energy ministry.

US crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.

Despite the unexpected draw in crude stocks, the significant rise in product inventories was putting those prices under pressure, PVM analyst Tamas Varga said.

Analysts expect oil prices to be on average down this year from 2024 due in part to production increases from non-OPEC countries.

"We are holding to our forecast for Brent crude to average $76/bbl in 2025, down from an average of $80/bbl in 2024," BMI, a division of Fitch Group, said in a client note.