Mubasher: Sohar International has signed a $500 million financing agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA) to support the Oman-GCC electrical interconnection project.
The venture is a major infrastructure undertaking aimed at enhancing regional energy security and sustainability, according to a press release.
Beyond its technical scope, the project will contribute to boosting inclusive growth, job creation, and promoting environmental sustainability.
The financing marks a new phase in the implementation of this strategic project, which aims to foster energy reliability, improve grid efficiency, and advance the integration of regional power systems.
This transformative project entails the construction of two 400kV transmission lines connecting Oman’s new Ibri station to GCCIA’s Al-Sila station in the UAE, covering a total distance of 530 kilometers.
It also includes substations in Ibri and Al-Bainouna, deployed with modern control, protection, and communication systems, in addition to a dynamic compensator station to enhance grid stability and efficiency.
Once operational, the project will provide a transfer capacity of up to 1,600 MW, reinforcing supply reliability, backing industrial growth, and expanding cross-border electricity trade in the region.
Mohsin bin Hamad Al Hadhrami, Chairman of the GCCIA, stated: “This project represents a strategic milestone in the pursuit of deeper regional energy integration. It reflects the shared vision of GCC leadership to build a more resilient and interconnected power infrastructure that aligns with sustainable development goals.”
On his part, Ahmed Ali Al-Ebrahim, CEO of GCCIA, said: “This project will optimize resource utilization, support growing electricity demand, and improve energy efficiency and reliability. It also establishes a foundation for future integration of renewable energy sources, making it a key enabler of regional energy transition.”
Abdulwahid bin Mohammed Al Murshidi, CEO of Sohar International, commented: “Sohar International’s financing of this transformative infrastructure project underscores our ongoing commitment to supporting initiatives that advance Oman Vision 2040 and foster regional economic integration.”
Al Murshidi highlighted: “This interconnection is not only critical for enhancing energy security and reducing carbon emissions, but it also aligns with the strategic goals of enabling renewable energy deployment and unlocking cross-border energy trade.”
