Three Omani firms sign new 15-year power agreements

MUSCAT, APRIL 7
Three Omani publicly listed power generation companies have announced the signing of new Power Purchase Agreements (PPAs) with Nama Power and Water Procurement Company (Nama PWP) – the sole offtaker of power and water in the Sultanate – effectively extending the operational lives of their power assets by a further 15 years.
In regulatory filings to the Muscat Stock Exchange (MSX) on April 7, 2026, Phoenix Power, Al Batinah Power and Al Suwadi Power said the new PPAs will come into effect upon the expiry of their current 15-year agreements.
Together, they account for over 3,500 MW of electricity generation capacity, representing around half of the total gas-based generation capacity of the Main Interconnected System (MIS), which covers much of the northern half of Oman. Notably, the lead international investor in all three firms is ENGIE, the French multinational utility company.
Phoenix Power said the new PPA, stemming from the acceptance of a Letter of Award issued by Nama PWP on March 18, 2026, commences on April 1, 2029, immediately upon the expiry of the current agreement, and will continue for a period of 15 years until March 31, 2044.
“The new agreement provides for the continuation of the purchase of 1,978.41 to 2,074.13 megawatts of power under agreed commercial terms, further strengthening the strategic partnership between the company and Nama Power and Water Procurement Company (PWP). It also ensures long-term financial stability and supports the company’s future operational sustainability,” the company stated.
Both Al Batinah Power and Al Suwadi Power Company (ASPC) signed new PPAs for their power plants, each with 746.53 MW capacity, that will enter into force on April 1, 2028 and remain in effect for 15 years until March 31, 2045.
The new PPAs help ensure reliable electricity supply in Oman by keeping well-performing plants operational as older units retire and new, particularly renewable, capacity comes online. The agreements also enhance cost efficiency through lower fuel consumption and competitive generation costs, support grid stability amid rising renewable penetration, and provide flexibility during the country’s energy transition.