The Gulf Cooperation Council Interconnection Authority (GCCIA) announced the commencement of the implementation of the direct electrical interconnection project between the Authority’s grid and Oman’s grid, in a strategic step reflecting the advancement of Gulf integration pathways in the energy sector and the strengthening of regional infrastructure.
Under the patronage of His Excellency Mohsin Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals and Chairman of the Board of Directors of the GCCIA.
The ceremony was attended by H.E. Sheikh Mubarak Fahad Al Thani, Ambassador of the State of Qatar to the Sultanate of Oman; H.E. Eng. Yaqoob Al Kiyumi, Vice Chairman of the Board of Directors of the GCCIA; H.E. Eng. Ahmed Ali Al Ibrahim, CEO of the GCCIA; H.E. Mr. Fahad Hamad Al Sulaiti, Director General of the Qatar Fund for Development (QFFD); and H.E. Mr. Abdulwahid Mohammed Al Murshidi, CEO of Sohar International Bank, along with a number of representatives from Gulf companies operating in the energy sector in the Sultanate.
In his address at the ceremony, H.E. Mohsin Al Hadhrami stated that the direct electricity interconnection project with the Sultanate of Oman is not merely a technical expansion of the power network, but rather a continuation of a long-term strategic vision endorsed by Their Majesties and Highnesses, the leaders of the Gulf Cooperation Council states.
He noted that the approval of the GCC interconnection project as a core pillar of regional infrastructure integration reflects their conviction that energy security is fundamental to national stability, economic growth, sustainable development, and the strengthening of regional energy security. He further noted that the GCC interconnection has, over more than two and a half decades, proven to be one of the most successful models of joint Gulf cooperation, having contributed to enhancing the reliability of electricity networks and generating significant economic savings for GCC member states.
He added that the direct interconnection project with the Sultanate of Oman strengthens the depth of the GCC power grid and enhances its operational flexibility, while also representing an advanced model of Gulf partnership in financing critical infrastructure projects, in support of the region’s energy transition and sustainable development.
This project, according to H.E. Eng. Ahmed Ali Al Ibrahim, CEO of the GCCIA, is one of the biggest growth projects in the Authority’s history. In light of the expansion of internal networks throughout GCC states, notable shifts in load patterns, and increased power generation, he stated that it seeks to increase the GCC power grid’s capacity to handle the swift rise in electricity demand. It also supports renewable energy projects and strengthens the grid’s ability to respond to emergencies.
He emphasized that the project will deliver significant operational and economic benefits, enhance the reliability of GCC electricity networks amid the transition toward renewable energy, increase power exchange capacity among member states, and demonstrate the Authority’s ability to translate the strategic vision of GCC leaders into tangible, executable projects. He revealed that the total cost of the project is estimated at approximately USD 700 million and will be financed through Gulf-based funding partnerships.
The Authority has previously signed financing agreements with the Qatar Fund for Development and Sohar International Bank to provide USD 600 million in funding for the project, contributing to the financing of the direct electricity interconnection with the Sultanate of Oman.
In his remarks at the ceremony, H.E. Mr. Fahad Hamad Al Sulaiti, Director General of the Qatar Fund for Development, affirmed that the Fund’s participation in financing the project reflects its commitment to strengthening the economies of Arab countries by supporting critical infrastructure projects and promoting sustainable development through the provision of financing and loans required to implement development programs.
He added that the initiative is based on a shared conviction regarding the importance of regional cooperation, noting that energy represents a fundamental pillar for achieving stability, economic and social development, and sustainable development.
He added that the project reflects the importance of regional cooperation and Gulf partnerships in supporting strategic energy projects, and contributes to building a more resilient and sustainable electricity system in the region. The project includes the construction of two 400-kilovolt transmission lines spanning approximately 530 kilometers, linking the Authority’s Al Sila station in the United Arab Emirates with the Ibri station to be established by the Authority in the Sultanate of Oman.
It also involves the construction of two main 400-kilovolt substations in Ibri and Al Baynounah, equipped with the latest protection, control, and communication systems in line with international best practices. The project also includes the installation of a Static Synchronous Compensator (STATCOM), which will enhance grid stability and increase transmission capacity, providing a total capacity of up to 1,600 megawatts. This will significantly strengthen the flexibility of the GCC power grid and enhance Oman’s ability to exchange electricity efficiently with interconnected Gulf states.
From an operational perspective, the project will contribute to enhancing the reliability of electricity networks and strengthening support capabilities during emergency situations, in addition to facilitating the integration of renewable and new energy sources into GCC power systems, delivering significant economic and operational efficiencies.
The direct interconnection project with the Sultanate of Oman represents a strategic step toward strengthening the integration of Gulf and regional energy networks, enhancing the reliability and sustainability of electricity systems, and supporting GCC member states’ objectives in energy transition and carbon-emissions reduction. This further reinforces the GCC interconnection as a global model for regional integration in the energy sector.
