GCCIA signs $500m deal for Oman power link
12 September 2025
The GCC Interconnection Authority (GCCIA) has signed a $500m interim financing agreement with Sohar International Bank to support the planned direct electricity interconnection between Oman and the GCC grid.
The project will involve building a 400-kilovolt double-circuit transmission line linking the Al-Sila station in the UAE with a new Ibri station in Oman. The line will span 530km.
The Al-Sila station, located in Abu Dhabi near the border with Saudi Arabia, is owned and operated by GCCIA. It is a key node in the existing Gulf power grid, enabling the transfer of electricity between the UAE, Saudi Arabia and other GCC states.
The Ibri station will be newly developed by GCCIA as part of the interconnection project. Situated in Oman’s Al-Dhahirah governorate, the facility will act as the entry point for linking Oman’s national grid to the wider GCC network. Oman is currently connected via the UAE grid.
The link will provide a transmission capacity of 1,700MW and a net transfer capacity of 1,200MW.
In February, MEED reported that the interconnection project would require around $700m of investment.
It had previously been estimated that the project could cost around $1bn.
The Qatar Fund for Development (QFFD) signed an agreement with the GCCIA in the same month to finance part of the electricity transmission network that will form Oman’s second link with the GCCIA network.
Local media reports suggested that QFFD would provide around $100m for the project.
Although a contract has yet to be awarded, it is understood that Bahwan Engineering Company is among the firms that have submitted bids for the project.
In June, Abu Dhabi Fund for Development (ADFD) signed a financing agreement with the GCCIA to support a $205m project linking the Al-Sila substation to Saudi Arabia’s Salwa substation.
This involves the construction of a 400kV double-circuit overhead transmission line extending 96km and includes the expansion of three key substations in Gonan, Al-Sila and Salwa.
Oman’s first link with the GCCIA became operational in November 2011.
It comprises a 200kV line connecting the Mahadha grid station in Al-Wasit, Oman, to the Al-Oha grid station in Al-Ain, UAE.
Projects are also under way for interconnection with Kuwait, as well as with Iraq, as part of a major investment.
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