Oman's Acwa Power Barka faces $5m hit after second gas incident

This is the second technical fault that Acwa Power Barka has been hit with in the last month

Acwa Power Barka's plants in Oman include Barka 1 IWPP.
Acwa Power Barka's plants in Oman include Barka 1 IWPP.

A gas turbine has tripped at an Acwa Power Barka plant in Oman forcing power generation to be shut down, with the company set for a multi-million dollar financial hit.

A technical fault affected the second gas turbine, known as GT-1, on 12 November, due to an “earth fault in [the] electricity generator unit”, Acwa Power Barka said in an update on the Muscat Securities Markets on 14 November.  

Both gas turbines have been shut down and the plant's steam turbine power generator is “not operational” either, the company said.

READ:  Algal bloom in Gulf of Oman costs ACWA Power Barka $364,000

While the extent of the damage is not yet clear, Acwa Power Barka, which develops and operates power generation and water desalination plants in the sultanate, said the financial impact to the business could be in the range of $5.2m (OMR2m). 

A site maintenance team has been mobilised alongside a specialist from the original equipment manufacturer to assess both gas turbine generators, with the company estimating it will take six weeks to repair. 

A thorough inspection is to be carried out and repair options are being evaluated. 

Acwa Power Barka has spoken to its insurers about the incident, and said it would provide further updates about the technical fault and repair work when it is in a position to do so.

This is the second technical fault that Acwa Power Barka has faced in the last 30 days after one of its gas turbines tripped on 29 October. Again, the company cited an “earth fault in [the] electricity generator unit” as the incident's cause.

READ: Saudi Aramco, Air Products, ACWA Power form $8bn JV

In an update on Muscat's stock market at the time, the business said “major maintenance” may be required, which could last between four and six weeks. 

The company estimated the loss of revenue and the cost of repairs could be as high as $2.6m (OMR1m).

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