The Gulf Cooperation Council Interconnection Authority (GCCIA) and Sohar International have signed a $500 million interim financing agreement to implement a landmark electricity interconnection project linking Oman to the wider GCC power grid. The signing ceremony was presided over by Eng. Salim bin Nasser al Aufi, Minister of Energy and Minerals, and attended by senior officials, including Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals and Chairman of GCCIA.

The agreement was formalised between Eng. Ahmed bin Ali al Ebrahim, CEO of GCCIA, and Abdulwahid bin Mohammed al Murshidi, CEO of Sohar International. The project is scheduled to begin by the end of 2025 and be completed in 2027.

The development includes the construction of two 400kV transmission lines stretching 530 kilometres between Oman’s new Ibri station and the GCCIA station at Al Silaa in the UAE. It also covers the establishment of advanced substations in Ibri and Al Batinah North & South, equipped with modern control, communication, and protection systems, along with a dynamic compensation station to enhance grid stability. Once operational, the link will provide up to 1,600 MW of capacity, supporting electricity trade, grid reliability, and industrial growth.

Officials highlighted the project’s significance in strengthening GCC grid integration, advancing renewable energy potential, and supporting sustainable development. The initiative also aligns with Oman Vision 2040, showcasing a model for public–private partnerships in strategic infrastructure delivery.