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The Gulf Cooperation Council Interconnection Authority has announced it has started implementation of a direct electricity interconnection between its grid and Oman’s network.

The $700m project marks one of the largest expansions in the authority’s history.

The project involves building a 400-kilovolt double-circuit transmission line extending about 530 kilometres between the two countries.

The line will link the GCCIA-owned Al-Sila substation in Abu Dhabi with a new Ibri substation in Oman, creating the first direct connection between Oman’s national grid and the GCC network.

Two new 400kV substations will be developed in Ibri and Al-Baynounah, equipped with advanced protection, control and communication systems. 

The Ibri facility, to be built by GCCIA in Oman’s Al-Dhahirah governorate, will serve as the main entry point for integrating Oman into the regional system.

The link will provide a transmission capacity of 1,600MW and a net transfer capacity of 1,200MW.

Contract awards

Oman is currently linked to the GCCIA grid indirectly through the UAE network, and the new infrastructure will establish a dedicated connection.

In November 2025, GCCIA awarded construction and consultancy contracts for the project to seven companies.

France’s Cegelec was appointed for substation works, while EDF was awarded a technical consultancy role.

Serbia’s Energoprojekt Entel secured the engineering consultancy services contract. India’s Kalpataru Projects International and KEC International were selected to build the transmission lines.

Local firms Oman National Engineering and Investment Company (ONEIC) and Zawawi Powertech Engineering were awarded the civil works packages.

In October, Larsen & Toubro’s Power Transmission & Distribution (PT&D) vertical said it had won the main contract to engineer, procure and construct a 400kV substation in the UAE for direct interconnection with Oman.

It was initially estimated that the project could cost around $1bn, but this was later revised to $700m.

In February last year, MEED reported that the Qatar Fund for Development (QFFD) had signed an agreement to finance $100m for the electricity transmission network that will form Oman’s second link with the GCCIA network.

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

Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes: