Marafiq, the Centralised Utilities Company serving the Special Economic Zone at Duqm (SEZAD) in Oman, has announced plans to invest in a new industrial desalination plant to support Meranti Green Steel’s upcoming green iron project in Al Duqm. The decision follows the signing of a Heads of Terms agreement between the two entities earlier this week, under which Marafiq will supply continuous, high-quality industrial water to Meranti’s direct reduced iron (DRI) and hot briquetted iron (HBI) facility.
As part of the agreement, Marafiq will be responsible for the development, financing, ownership, and operation of the desalination plant, along with the associated water infrastructure, including pipelines, pumping stations, and metering systems that will deliver water directly to the Meranti site. Bassem Shabaka, Manager of Water & Wastewater Engineering at Marafiq, highlighted the company’s role in managing the critical water network essential for the project.
Marafiq operates as a subsidiary of OQ Group and functions as Oman’s integrated utilities provider for SEZAD under a 25-year agreement with the Public Authority for Special Economic Zones and Free Zones (OPAZ). This exclusivity mandates Marafiq to generate, transmit, and distribute a wide range of utility services across the economic zone, giving industrial investors access to a centralized platform for essential services instead of requiring individual infrastructure investments.
The company’s portfolio includes electricity generation and transmission, potable and industrial water production and distribution, desalination, steam supply, wastewater management, industrial gases, and waste management. Key assets managed by Marafiq include the 326 MW Duqm Integrated Power and Water Plant (DIPWP), an 80-kilometer 132-kV transmission network serving Ras Markaz, and the potable water distribution network within SEZAD.
Meranti Green Steel, headquartered in Singapore, is developing a low-carbon DRI/HBI facility with an initial production capacity of 2.5 million tonnes per year, planned to expand to 5 million tonnes in a second phase. The project has advanced through front-end engineering and design (FEED), secured conditional natural gas allocations, and established long-term offtake agreements for its first production module. Commissioning is targeted for mid-2029.
Green iron projects such as this require extensive utility support, including large volumes of desalinated water, reliable natural gas supply, and, in the future, green hydrogen, complemented by abundant renewable electricity, industrial gases, and comprehensive utility infrastructure. Marafiq’s investment in desalination capacity is a critical component to meet these demands and support Meranti Green Steel’s efforts to establish a sustainable steel production facility in Oman.