Marafiq is set to build a new industrial desalination plant in Duqm, underscoring the growing importance of integrated water services for Oman’s emerging low-carbon heavy industry sector and supporting Meranti Green Steel’s ambitious project aiming for mid-2029 completion.
Marafiq is gearing up to build a new industrial desalination plant in Duqm, which really highlights just how crucial water infrastructure has become for the region’s emerging low-carbon heavy industry sector. The Centralised Utilities Company for the Special Economic Zone at Duqm will handle the financing and development of this facility, and it’s meant to serve Meranti Green Steel’s upcoming iron project, following a Heads of Terms agreement between the two companies.
Basically, this setup means Marafiq will provide a steady flow of industrial water to support Meranti’s planned direct reduced iron (DRI) and hot briquetted iron (HBI) plants. Alongside that, Marafiq will also own and manage the supporting network , pipelines, pumps, metering equipment , that will deliver water directly to the site within the Duqm Industrial Zone.
For Meranti, this deal really takes a load off their shoulders, one of the more challenging aspects of getting a project like this off the ground. Green iron plants are notoriously big users of utility services, they demand reliable water supply, massive amounts of energy, and often, long-term access to hydrogen and other industrial gases. And in Duqm, the project is being designed around those realities from the very start, which is pretty smart.
Meranti Green Steel, a company based in Singapore, is working on developing a low-carbon DRI and HBI complex, initially aiming for an annual capacity of 2.5 million tonnes. There’s also talk of a second phase, which could push that up to 5 million tonnes. According to the latest project updates, the front-end engineering and design are already done, natural gas has been allocated on a conditional basis, and they’ve secured long-term offtake agreements for the first production module. They’re aiming to have everything up and running around mid-2029.
The progress on offtake agreements is pretty important because it gives the project early commercial credibility. Industry reports mention that the first module’s output is now fully contracted, with buyers including Thyssenkrupp Materials Trading, INTERFER Edelstahl, INTERFER Austria, as well as Glencore and Meranti’s planned steel operations in Thailand. It’s quite impressive, really, considering the project is still several years away from full-scale production.
Meanwhile, Marafiq isn’t starting from zero here. As a subsidiary of OQ Group, it operates under a 25-year Centralised Utilities Services Agreement with the Public Authority for Special Economic Zones and Free Zones (SEZAD), which means it has the mandate to generate, transmit, and distribute utility services across the zone. Its main role is to provide industrial users with a single utility platform instead of each investor having to build their own infrastructure.
That platform already covers power generation, drinking and industrial water supply, desalination, steam, wastewater treatment, industrial gases, and waste management. One of its key assets is the Duqm Integrated Power and Water Plant, described as a 325 MW combined-cycle gas turbine facility paired with a seawater reverse osmosis (SWRO) plant capable of producing 36,000 cubic metres of water daily. Marafiq says the intake and outfall systems were designed with plenty of room for future investors in the zone.
The new desalination project fits into that broader strategy quite neatly. It also seems to echo earlier signals that Marafiq was working on expanding its water infrastructure in Duqm. Industry sources like MEED mentioned that the company had reissued a tender for another seawater reverse osmosis plant, with a budget of roughly $100 million and a capacity of about 45 million litres a day. That project too was aimed at supporting industrial clients in the zone, including a proposed HBI plant.
What makes Duqm particularly attractive is the combination of port access, available land, and the ability to develop large-scale utilities in one place. For metals producers, trying to cut emissions, those basics are becoming as important as ore supply or shipping routes these days. Especially in Oman, where water is a limited resource, desalinisation and centralised utilities are vital for industrial expansion.
That’s why centralised utility systems are such a strategic advantage. Instead of every investor building their own, Marafiq can act as a shared backbone for growth, which in turn reduces unnecessary duplication, speeds up project timelines, and supports the kind of long-term infrastructure needed for large export industries, you know? It’s a smarter way to grow, really.
Of course, this also illustrates how even greener steel projects still rely heavily on traditional industrial services. Even when they’re marketed as being environmentally friendly, most still depend on gas initially and require significant water and power systems , you see what I mean? The Duqm project exemplifies the balance, they want to lower emissions, but they need a big infrastructure commitment first. It’s kind of a necessary step, really.
For Oman, all this investment plays into a broader plan to diversify industry around SEZAD. Duqm has been developed as a hub for large-scale manufacturing and export-driven activity, and providing utility services is rapidly becoming one of its biggest competitive advantages. Marafiq’s recent move signals that the utility model is moving beyond supporting just refineries and power plants , it’s now enabling the next wave of green-heavy industries, which is pretty exciting.
If everything stays on schedule, this new desalination plant will give Meranti the water security it needs to reach commissioning in mid-2029. And it will also reinforce Marafiq’s role as a key player in Duqm’s ongoing industrial development, especially as more capital-heavy, energy-sensitive projects shift from ideas into concrete execution.
- https://www.omanobserver.om/article/1193850/business/marafiq-to-invest-in-new-industrial-desalination-plant-in-al-duqm – Please view link – unable to able to access data
- https://www.omanobserver.om/article/1193850/business/marafiq-to-invest-in-new-industrial-desalination-plant-in-al-duqm – Marafiq, the Centralised Utilities Company serving the Special Economic Zone at Duqm (SEZAD), is set to invest in a new industrial water desalination plant to meet the water requirements of Singapore-based Meranti Green Steel’s planned green iron project in Al Duqm. The investment follows the signing of a Heads of Terms agreement between the two companies, under which Marafiq will provide a continuous, high-quality supply of industrial water for Meranti’s upcoming direct reduced iron (DRI) and hot briquetted iron (HBI) plant. Marafiq will develop and finance the new desalination facility in the Duqm Industrial Zone, own and operate the associated water infrastructure, and manage the pipeline, pumping, and metering systems delivering water directly to the Meranti site. Marafiq is a subsidiary of OQ Group, operating under a 25-year Centralised Utilities Services Agreement with the Public Authority for Special Economic Zones and Free Zones (OPAZ), granting the company the exclusive mandate to generate, transmit, and distribute a comprehensive range of utility services across the economic zone. Meranti Green Steel is developing a low-carbon DRI/HBI facility with an initial production capacity of 2.5 million tonnes per annum, expandable to 5 million tonnes in a second phase. The project has progressed through front-end engineering and design (FEED), secured conditional natural gas allocation, and long-term offtake agreements for its first production module, with commissioning targeted for mid-2029.
- https://marafiq.om/en-us/Assets/Duqm-Integrated-Power-and-Water-Plant-DIPWP – Marafiq’s Duqm Integrated Power and Water Plant (DIPWP) is a 100% owned subsidiary of Marafiq, established to execute and supply two major key developments in Duqm with utility requirements via the DIPWP project and 132 KV Power Transmission System to Raz Markaz (132 KV RMT) project. The DIPWP project provides power and water to Duqm Refinery (OQ8) on a captive basis. Utilizing state-of-the-art technology, the project facilities include a 325 MW Combined Cycle Gas Turbine (CCGT) Power Plant, 36,000 m³/day (equivalent to 800 large water tankers) Sea Water Reverse Osmosis (SWRO) Desalination Plant, 1,500,000 m³/day (equivalent to 33,000 large water tankers) Seawater Intake Facilities, and 1,000,000 m³/day (equivalent to 22,000 large water tankers) Outfall Facilities. The Seawater Intake and Outfall Facilities have sufficient capacity to serve future investors in the Duqm Industrial Zone with their water requirements.
- https://www.meed.com/marafiq-reissues-duqm-ro-plant-tender – Oman-based Central Utilities Company (Marafiq) has reissued the main contract tender for its planned seawater reverse osmosis (RO) desalination plant in Duqm. The revised submission deadline is 25 November. The project has an estimated budget of $100 million and will supply industrial water and support wastewater services in the Duqm Special Economic Zone. The scheme involves building a seawater RO plant, an intake system, pre-treatment facilities, pumping stations, metering stations, pipelines, and associated infrastructure. Marafiq is developing the project in its capacity as the authorised utilities provider for the Duqm Special Economic Zone. The company intends to develop a plant with a capacity of 45 million litres a day to serve industrial customers, including a planned hot-briquetted iron (HBI) facility proposed by an international steel manufacturer at Duqm Port.
- https://www.steelradar.com/en/meranti-green-steel-completed-all-offtake-agreements-for-its-green-iron-project-in-oman/ – Meranti Green Steel has completed all offtake agreements for the first phase of its planned green Hot Briquetted Iron (HBI) facility in Oman’s Duqm Special Economic Zone. The agreements cover the entire capacity of the first module, which is designed to produce 2.5 million tonnes per year. Under the arrangements, 1.0 million tonnes per annum will be supplied to Thyssenkrupp Materials Trading, while 0.25 million tonnes per annum have been allocated to INTERFER Edelstahl and INTERFER Austria. The remaining volumes will be delivered to Glencore and to Meranti’s planned steel plant in Rayong, Thailand.
- https://www.steeltimesint.com/news/meranti-green-steel-announces-full-offtake-coverage-for-duqm-green-hbi-plant – Meranti Green Steel has announced that it has secured full offtake coverage for the first module of its green hot briquetted iron (HBI) production from its new iron plant in the Duqm Special Economic Zone in Oman, marking a key commercial milestone for the project. The offtake agreements cover the company’s full planned module 1 capacity of 2.5 million tonnes per annum (Mt/yr) of HBI, allocated across four core partners: 1 Mt/yr to Thyssenkrupp Materials Trading, 0.25 Mt/yr to INTERFER Edelstahl & INTERFER Austria, and the remaining balance to Glencore and Meranti’s new Rayong steel plant in Thailand, supporting the ramp-up of Meranti’s green hot rolled coil production. The offtake agreements include allocation of additional volumes among the four off-takers for a potential second HBI module in Oman, subject to certain conditions being met.
- https://oq.com/en/news-and-media/newsroom/20251024-oq-enables-duqms-growth-journey-through-10-billion-strategic-investment – Leveraging its expertise in international trade and supply chain management, OQT plays a pivotal role in integrating Duqm’s production, storage, and export operations into a seamless commercial ecosystem that transforms operational efficiency into lasting economic value and reinforces Oman’s role as a regional energy trading powerhouse. Marafiq, one of OQ’s key investments in SEZAD, stands as a model of efficiency in industrial utilities management. The company operates a state-of-the-art 326 MW gas turbine power plant and a 36,000 m³/day water desalination plant, supplying reliable utilities to OQ8 and the surrounding industrial area. Since commencing commercial operations in March 2024, Marafiq has achieved 100% operational readiness, delivering more than 85 GWh of electricity and 710 thousand m³ of water sustainably without interruption. The company is also investing in seawater intake facilities with a capacity of 1.4 million m³/day.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on August 2, 2026, and reports on a recent Heads of Terms agreement between Marafiq and Meranti Green Steel. No earlier publications of this specific agreement were found, indicating the content is fresh. However, the article references Marafiq’s existing infrastructure and previous projects, which may be recycled information. Further verification is needed to confirm the originality of the entire content.
Quotes check
Score:
6
Notes:
The article includes a direct quote from Bassem Shabaka, Manager of Water & Wastewater Engineering at Marafiq. However, this quote cannot be independently verified through available sources, raising concerns about its authenticity. The lack of verifiable quotes diminishes the credibility of the article.
Source reliability
Score:
7
Notes:
The article is published by the Oman Observer, a local news outlet. While it provides detailed information, the source’s independence and potential biases are unclear. The Oman Observer’s reputation and editorial standards are not well-documented, which affects the overall reliability of the information presented.
Plausibility check
Score:
7
Notes:
The claims about Marafiq’s investment in a new desalination plant to support Meranti Green Steel’s project in Al Duqm are plausible and align with known industry practices. However, the article lacks supporting details from other reputable outlets, and the absence of independent verification raises questions about the accuracy of the information.
Overall assessment
Verdict (FAIL, OPEN, PASS): REVIEW
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information about Marafiq’s investment in a new desalination plant to support Meranti Green Steel’s project in Al Duqm. While the content appears fresh and plausible, the lack of independently verifiable quotes, reliance on a single source with unclear reliability, and absence of supporting details from other reputable outlets necessitate further editorial review to confirm the accuracy and credibility of the information presented.
