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28 April 2008 - The first coal fired power plant in the Gulf could come on line as early as 2012, following a decision by the Oman government to approve proposals for a plant at Duqm.

Oman has rejected a series of previous plans to develop a coal fired plant, but with concerns growing over future energy sources, it has decided to implement the scheme.

Plans for the independent water and power project (IWPP), which has been confirmed by a source close to the project, include a power capacity of 1000-1200 MW. The desalination capacity has yet to be finalised.

One bidding group has already emerged. Korea's LG International has signed a memorandum of understanding with Korea Southern Power Company (Kospo) and Oman Oil Company (OOC) to bid for the $2bn project.

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