Business

Nama PWP awards new 10-year contract to Sembcorp Salalah

Sembcorp Salalah’s integrated water and power project has been in full commercial operation in the Wilayat of Salalah since May 2012
 
Sembcorp Salalah’s integrated water and power project has been in full commercial operation in the Wilayat of Salalah since May 2012

MUSCAT: Sembcorp Industries (Sembcorp) through its subsidiary, Sembcorp Salalah Power & Water Company SAOG (SSPWC), has been awarded a new 10-year Power and Water Purchase Agreement (PWPA) from Nama Power and Water Procurement Company (Nama PWP). The new agreement will commence from April 4, 2027, following the expiry of the current 15-year PWPA on April 3, 2027.
Under the new PWPA, the contracted capacity of the Salalah Independent Water and Power Plant is 465MW of power per hour and 15 million imperial gallons (68,190 cubic metres) of water per day. The plant, which is developed, owned and operated by SSPWC, comprises a gas-fired combined cycle power plant and a reverse osmosis seawater desalination plant.
The award ensures continued offtake under mutually agreed commercial terms and reinforces the strategic partnership between SSPWC and Nama PWP. It also strengthens long-term revenue visibility and supports operational sustainability.
Built with an investment of around $1 billion, the plant has been in full commercial operation since May 2012. Total investment in the development of the project is around $1 billion.
With a portfolio of over 1.0GW of energy assets in Oman, comprising gas and renewables, Sembcorp is well-positioned to advance its long-term growth plans in the Sultanate of Oman.