Qatar Electricity and Water Company (QEWC) has signed up with three other international partners to set up a 2,000 MW gas-propelled power plant in Oman, a major step in a plan to invest overseas in the power field.

QEWC joins a consortium consisting of Marubeni Corporation, Chubu Electric and Multitech LLC for setting up the Sur independent power project in eastern Oman. The cost of the plant is put at RO700 million ($1.82 billion) and the commissioning time was given as 2013. QEWC general manager Fahd Al Mohannadi signed the agreement with the Oman Power and Water Procurement Company (OPWP) at a ceremony held in Muscat.

The Sur IPP is described as the biggest greenfield power project ever to be undertaken in Oman. Demand for electricity has been rising in the sultanate at an average annual rate of 8.9 per cent since 2004. The first unit of 433 MW from the Sur project is expected to be online by April 2013.

'The successful signing of the gas-fired Sur IPP in Oman demonstrates QEWC’s continued development of a generation business outside Qatar,' said Al Mohannadi.

QEWC has under its ownership an installed capacity of 5.4 GW of power and 255 million imperial gallons per day.

The company is close to completing an acquisition in Jordan and is participating in the Hassyan IPP opportunity in Dubai.

Earlier this year, Deputy Prime Minister and QEWC chairman Abdullah bin Hamad Al Attiyah said Qatar was exploring the possibility of investing in the power sector in countries like India, Korea, Syria and Oman.

He said the initiative followed excellent political and economic relations with those countries and the growing demand for power they faced. QEWC would adopt long-term investment plans ranging from 10 to 12 years and employ its cash flows and investments for the benefit of its stake holders and as contribution to Qatar’s economy.

QEWC is keen to set up a power plant in India in partnership with National Thermal Power Corporation and in Nasriyah in Syria. The company has also shown interest in investing in a power plant in Seoul with South Korean majors.

In 2010 QEWC completed its fully owned Ras Abu Fontas A1 water desalination station. The company has participated in four independent power projects in Qatar and has a 40 per cent stake in Mesaieed Power Company and an 80 per cent stake in in Ras Laffan Power Company.