Power Grid

Qatar has pledged to provide up to $100 million in funding to support the Gulf Interconnection Authority's new project with Oman, which aims to enhance energy security across the region. On February 13, 2025, the Gulf Interconnection Authority and the Qatar Fund for Development formalized this commitment with the signing of a financing agreement worth OMR 38.5 million (USD 100 million).

The total cost of the project exceeds OMR 269.2 million (USD 700 million) and focuses on creating a direct electricity link between the UAE and Oman, with significant implications for regional energy infrastructure.

The project involves the construction of two 400 kV transmission lines linking the Gulf Interconnection Authority's Sila station in the UAE with a new station to be built in Ibri, Oman, covering a distance of 530 kilometers. This initiative includes building two advanced 400 kV transmission stations in Ibri and Baynouna, equipped with modern control, protection, and communication systems.

These systems will ensure operational reliability, efficiency, and safety while increasing the electricity network's stability and capacity, enabling a transmission capacity of 1.7 GW, with a net capacity of 1.2 GW.

The project is part of a larger strategy to integrate the Gulf electricity grids, improving the reliability and sustainability of electricity systems across the region. It will provide multiple benefits, including reducing the need for new power plants, enhancing energy exchange between the GCC countries and Oman, and increasing the resilience of electrical systems.

Additionally, the project is expected to lower operational costs, generate significant financial savings, and contribute to environmental sustainability by reducing carbon emissions.

Omani and regional officials emphasized that this project represents a critical step in the Gulf region's energy integration plans, particularly for enhancing energy security and supporting sustainable development. The Qatar Fund for Development's contribution underscores the importance of regional partnerships in financing major infrastructure projects.

The Gulf Interconnection Authority also highlighted its long history of fostering energy cooperation among GCC countries, with the new interconnection project set to further bolster these efforts and support the ongoing development of an integrated, efficient regional electricity market.