meed-logo

line1 line2 line3
SIGN IN / REGISTER

Lessons learnt from a power plant decommissioning

26 February 2026

 

Al-Kamil power plant, a 280MW, gas-fired power plant in the Sharqiya region of Oman, was recently decommissioned following nearly 20 years of operations as the country’s second independent power plant.

The plant reached commercial operation in 2002, at which time it started to supply electricity to Nama Power & Water Procurement Company under a 15-year power purchase agreement that was later extended to the end of 2021. No further extension was granted so, in 2022, the decommissioning process was initiated.

Al-Kamil power plant was one of the first privately owned power plants in Oman to be decommissioned. The entire process took significantly longer than planned – three years compared to an initial target of 12 months. This was not unexpected, however, as there were not yet any standard processes to follow. Everything was being done for the first time, and proper procedures had to be established.

Starting decommissioning 

The decommissioning of a power plant is a complex process and can take as much time to complete as it takes to build a plant. It involves environmental considerations, health and safety protocols, detailed surveys, de-energisation, dismantling, demolition, waste management and the segregation and storage of secondary valuables. 

Careful planning and management are essential to ensure that decommissioning is accomplished safely, cost-effectively and in accordance with all government environmental standards.

Consulting on the decommissioning of Al-Kamil were Dubai’s Golden Sands Marketing Consulting (GSMC), appointed in 2021, alongside Abu Dhabi’s Sustainable Water & Power Company (SWPC) and Dubai’s Tractebel Engineering Company (TEC).

One of the first steps that GSMC undertook was to prepare a master plan covering the entire decommissioning process (see right).

A site investigation was undertaken by GSMC and SWPC early in the process to determine the condition of the power assets and the overall site. 

The Al-Kamil power plant was found to have been well maintained, with no major health, safety, security and environment (HSSE) issues.

SWPC prepared the dismantling guidelines covering all plant equipment, and these were reviewed by TEC. The guidelines covered three main phases: the shut down and isolation of all assets; the de-
energisation process; and the dismantling of the plant equipment, its removal from site and the demolition of all remaining civil works.

GSMC designed a sales strategy for the plant equipment, taking into consideration the secondary market for power-related equipment, as well as the scrap market in Oman. A competitive procurement process was also followed in an effort to maximise sales revenues from plant equipment.

A separate tender was issued to appoint a demolition contractor to remove the remaining civil works, and once this work was complete, a local environmental engineering company undertook a final environmental report to demonstrate that the site was properly cleared and ready for handover to the original owner, the Housing & Urban Planning Ministry.

Final results

The decommissioning project went well in terms of HSSE considerations, with no fatalities, no lost-time injuries and no first aid injuries over the more than 243,000 total workhours at the site. 

There were no material environmental spills or incidents to report, and all above- and below-ground structures were demolished and safely removed from the site in accordance with local requirements. 

The final environmental report, completed just before handover, showed that the site was effectively in the same condition as it was when originally taken over at the start of construction.

The decommissioning was also successful from a financial perspective, as revenues from the sale of plant equipment and diesel fuel were beyond what was required to cover the costs associated with the decommissioning process. 

Lessons learnt 

Many lessons were learnt during the process that can benefit future power plant decommissioning efforts in the region.

> Notify key stakeholders early: Key stakeholders are those that have a vested interest in the project, either through ownership of certain assets on site, such as grid connection assets, or via regulation, such as the environmental authority. Many of these stakeholders take time to respond, so notifying key stakeholders early in the process can ensure that unnecessary delays are avoided.

> Prioritise HSSE: For any future decommissioning project, HSSE must be a top priority, and this should be the focus throughout the entire decommissioning process – at all levels of work and management. 

The site manager at Al-Kamil installed a 24/7 closed-circuit television camera, which proved to be extremely effective in terms of monitoring progress and identifying potential HSSE issues before they became an incident. This simple and cost-effective practice should be replicated for all future decommissioning projects.

> Appoint the environmental consultant early in the process: It is advisable to appoint an environmental consultant early in the process. The consultant is needed to coordinate activities with the local environmental authority and obtain a no-objection letter or certificate, complete an environmental management report and an update of the environmental impact assessment, which includes an environmental baseline.

Ideally, these reports and environmental authority approvals should be completed well before any work is under way at the site. This information is also useful to potential bidders for the sale of equipment, or to contractors involved in the dismantling and demolition process.

> Submit an environmental management plan for approval: It is unlikely that any environmental authority will provide a no-objection letter or certificate without reviewing the environmental plan. It is therefore necessary to complete the plan early, prior to informing the environmental authority. This can minimise potential delays in starting the decommissioning process. 

As a general practice, an environmental consultant should be brought on board early in the process, ideally once the overall master plan is approved by the company.

> Establish a proactive steering committee: This was done at Al-Kamil and proved to be effective when it came to overseeing project progress and dealing with issues as they arose. Certain members of the steering committee visited the site regularly and undertook spot HSSE inspections.

At Al-Kamil, the overall decommissioning was relatively straightforward as the plant was in a remote area. However, decommissioning a power plant in a busier location, or when part of the power plant remains in operation, is more challenging. Under these circumstances, a steering committee is vital. 

> Set realistic delivery and completion timelines: Decommissioning a power plant is a complex process. The initial timeline to complete the process for Al-Kamil was one year, which was the best estimate at the time as there were no benchmarks or references in Oman. However, the actual completion time turned out to be three years – longer than the approximately 2.5 years it took to build the plant, from the start of construction in early 2001 to full commercial operation in July 2003.

Realistic delivery dates should be set for contractors, suppliers and others involved in the decommissioning process. This is likely to result in better pricing, as bidders tend to factor in higher contingencies with shorter or fast-track delivery dates. More realistic delivery dates also help management to allocate staff resources and manage the decommissioning budget. 

Finally, realistic delivery dates help to manage owner and shareholder expectations regarding project completion.

Given the experience with Al-Kamil, a reasonable decommissioning timeline for a power plant is probably close to the actual construction timeline for the plant involved.

> Allow time to maximise revenues from the sale of assets: The market value for Al-Kamil’s power assets was estimated at a value significantly higher than the prevailing scrap value. This was based in part on the value of similar gas turbine units, after adjusting for age, usage and other factors that affect the net market value. However, the company realised a much lower value, even after retendering the equipment sales in an effort to get a better price.

It appears that prices close to the market rate are only achievable if there is time to find a suitable buyer. This can take many months or even years – typically a longer time than the owners of power plants wish to take. 

Moreover, as renewables continue to penetrate the market, there is less worldwide demand for used gas turbine units. Prevailing market supply and demand conditions also have a bearing on the sale price for secondary equipment, and this factor needs to be considered.

If time is of the essence, then power plant owners need to accept the fact that the expected revenues will likely be on the low side, although still higher than the scrap value of the assets. 

Main image: Picture 1: Al-Kamil power plant as constructed; Picture 2: Post decommissioning 

https://image.digitalinsightresearch.in/uploads/NewsArticle/15780944/main.gif

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Saudi Arabia tenders Jeddah-Mecca highway PPP

    8 May 2026

     

    Saudi Arabia’s Roads General Authority (RGA) and the National Centre for Privatisation & PPP (NCP) have tendered the contract for the development of the Jeddah-Mecca highway project.

    The tender was issued on 19 April, with a bid submission deadline of 19 August.

    The scope of the tender is split into two sections: development of motor service areas (MSA) and highway services. 

    Under the MSA component, the company will develop, permit, finance, design, engineer, procure, construct, complete, test, commission, insure, operate and maintain three MSAs along the highway.

    The contract term is 25 years, including two years of the construction period.

    Each MSA plot will cover 34,500 square metres and will include facilities such as fuel stations, electric vehicle charging, truck services, tyre and oil change, car wash and repair, retail and food outlets, ATMs, restrooms, mosques, parking, landscaping and other associated utilities.

    The highway services component will include insurance, operation and maintenance of highway assets for 10 years.

    The 64-kilometre (km) Jeddah-Mecca highway has four lanes in each direction. The construction works on 51km are complete, while the rest is under construction and scheduled for completion in 2027.

    In March, the RGA and NCP prequalified three bidders to develop the project. These were:

    • Algihaz Holding / ICA Construction (local/Turkiye)
    • Lamar Holding / Shaanxi Construction Engineering Group Corporation (Bahrain/China)
    • Mada International Holding (local)

    The expression of interest notice for the project was first issued in October 2024, as MEED reported.

    The project is one of four planned highway schemes in the kingdom’s privatisation and public-private partnership (P&PPP) pipeline.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16731199/main.jpg
    Yasir Iqbal
  • US sanctions Iraq’s deputy oil minister

    8 May 2026

    The US has sanctioned Iraq’s Deputy Oil Minister Ali Maarij Al-Bahadly, in another blow for the country’s oil and gas sector.

    In a statement released by the US Treasury, it said that he “abuses his position to facilitate the diversion of oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq”.

    The US Department of the Treasury’s Office of Foreign Assets Control (Ofac) has also designated three senior leaders of the militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq. 

    In its statement, it said that the US will continue to hold these groups and other militias in Iraq, such as Kata’ib Hizballah, accountable for their attacks against US personnel and civilians, diplomatic facilities and businesses across Iraq.

    Secretary of the Treasury, Scott Bessent, said: “Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people.”

    He added: “Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners.”

    Ofac said that it designated Iraq’s deputy minister of oil on 7 May because he had been “instrumental in facilitating the diversion of Iraqi oil products to benefit known Iran-affiliated oil smuggler Salim Ahmed Said, as well as Iran-backed terrorist militia Asa’ib Ahl Al-Haq (AAH)”.

    It added: “For years, Maarij has used his official positions, first as the head of the Iraqi parliament’s oil and gas committee, and then within the Iraq Ministry of Oil, to enrich Said, AAH, and by extension, Iran.”

    The US Treasury said that it designated Said in June 2025 for running a network of companies selling Iranian oil falsely declared as Iraqi oil to avoid sanctions.

    In its statement, it said: “Integral to this operation was Said’s ability to obtain favoured access to Iraqi oil and procure forged documentation from Iraqi government officials, legitimising illicit oil.

    “To that end, Said was responsible for bribing complicit officials in the Iraqi government, as well as reportedly installing Maarij in his official position.”

    Since 2018, Maarij has held several positions in Iraq’s Oil Ministry, including head of the licensing and contracts office, deputy minister, and acting oil minister. 

    The US Treasury said that, in his official capacities, Maarij enabled Said to illicitly procure oil products by granting exportation rights to Said’s companies. 

    It claimed that Maarij authorised trucking several million dollars’ worth of oil a day from the Qayarah oil field to VS Oil Terminal in Khor Zubayr for export.

    The US sanctioned VS Oil Terminal in July last year.

    The US Treasury said that VS Oil oversaw the mixing of Iranian oil with Iraqi oil before being shipped to market. 

    It also said that Maarij is also responsible for falsifying documentation on the provenance of oil for Said’s network, enabling it to be smuggled to market disguised as purely Iraqi oil.

    Neither Iraq nor Iran has responded to the announcement of the new sanctions.

    The sanctions were announced as the US and Iran battle over control of the Strait of Hormuz, which has seen significant disruption to shipping since the US and Israel started their war with Iran on 28 February 2026.

    Iraq’s oil and gas sector is currently going through a crisis due to the disruption to shipping through the Strait of Hormuz, which has caused the country’s oil exports to collapse.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16729987/main.png
    Wil Crisp
  • Sabic registers profit in first quarter of 2026

    8 May 2026

    Saudi Basic Industries Corporation (Sabic) returned to profit in the first quarter of 2026, posting a net income of SR13.2m ($3.52m) compared to a SR1.21bn loss a year earlier. 

    The Saudi petrochemicals ​giant posted adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of SR4.15bn for the three months to 31 March, up 25% from the previous quarter.

    The company’s revenue fell 6% quarter-on-quarter to SR26.15bn ($6.97m).

    Adjusted net income was recorded in at SR816m, compared to a loss in the previous quarter, while adjusted earnings per share stood at SR0.27.

    Adjusted earnings before interest and taxes rose to SR1.45bn, an increase of SR1.01bn from the prior quarter.

    Sabic said its net position shifted to a debt of SR2.77bn at the end of March, from a net cash position of SR3.61bn at the end of 2025.

    “Our transformation journey continues to deliver performance improvements that unlock greater value for our shareholders. We realised $220m at the Ebitda level on a recurring basis during the first quarter of 2026, in line with our planned improvement rate. This keeps us on track towards our cumulative 2030 annual target of $3bn, consisting of $1.4bn in cost excellence and $1.6bn in value creation,” Sabic CEO Faisal Alfaqeer said.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16719476/main1840.jpg
    Indrajit Sen
  • Dubai extends bids for Hassyan SWRO pipeline packages

    7 May 2026

    Dubai Electricity & Water Authority (Dewa) has extended the bid submission deadlines for two water transmission pipeline packages linked to phase two of the Hassyan seawater reverse osmosis (SWRO) desalination plant in Dubai.

    The tenders cover the supply, installation, testing and commissioning works for glass reinforced epoxy (GRE) water transmission pipelines. The project will enable potable water to be transmitted from the phase two plant into Dubai’s transmission network.

    The tender bond for the first package is AED9.6m ($2.6mn). The tender bond for the second project is AED17.9m. The deadlines for the two projects have been pushed back to 2 June and 4 June, respectively.

    Local firms Al-Nasr Contracting, Tristar E&C and Wade Adams, along with UAE firm Binladin Contracting Group, are among the companies expected to submit bids for the main contracts for these projects.

    In April, Dewa issued two separate tenders for transmission projects in the emirate.

    The first tender covers the supply, installation, testing and commissioning of GRE water transmission pipelines and associated works at several locations in Dubai. The closing date for submissions is 4 June. Bidders are required to provide a tender bond of AED9m ($2.45m).

    The second tender relates to 132kV cable works and associated modifications at several substations, including the Autosouq, Crystal and Danaro Road substations. The package also includes a new 132kV cable circuit and cable shifting works linked to the DXB INTRL 400/132kV substation.

    The bid submission deadline is 11 June, with a required tender bond of AED17.5m.

    In January, Dewa announced that construction of the 180 million imperial gallons a day phase one of the Hassyan SWRO independent water project was 90% complete.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16716599/main.jpg
    Mark Dowdall
  • Teams form for Qiddiya high-speed rail PPP

    7 May 2026

     

    Firms are forming joint ventures as part of a public-private partnership (PPP) package to bid for the upcoming works on the Qiddiya high-speed rail project in Riyadh.

    The latest development follows Saudi Arabia’s Royal Commission for Riyadh City, Qiddiya Investment Company and the National Centre for Privatisation & PPP receiving prequalification statements from firms by 30 April for the PPP package of the rail project.

    The consortiums that are planning to bid for the PPP package are:

    • McQuarie / Hitachi / Keolis / Albawani / WeBuild / Hyundai / HyundaiRotem
    • ⁠Plenary / Siemens / MTR / FCC / Nesma & Partners / Freyssinet
    • ⁠Vision Invest / CRRC / Mapa 
    • Mada International / ⁠Renfe / Alstom / Hassan Allam Construction / El-Seif Engineering Contracting / China State Construction Engineering Corporation / Limak Holding
    • Lamar Holding / Talgo / Mermec / China Harbour Engineering Company / Al-Ayuni Investment & Contracting

    The prequalification notice was issued on 19 January, and a project briefing session was held on 23 February at Qiddiya Entertainment City.

    The Qiddiya high-speed rail project, also known as Q-Express, will cover 84 kilometres, connecting King Salman International airport and King Abdullah Financial District with Qiddiya City.

    The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    There are five stations planned: Qiddiya Grand Central Station, Qiddiya Uptown Station, King Abdullah Financial District, Terminal 6 King Salman International Airport (KSIA) and Iconic Terminal at KSIA.

    Last month, MEED exclusively reported that contractors had submitted their prequalification statements for the engineering, procurement, construction and financing package by 16 April.

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project. UK-based consultancy Ernst & Young is acting as the transaction adviser, and Ashurst is the legal adviser.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16716585/main.jpg
    Yasir Iqbal