MUSCAT, APRIL 25
Singaporean state-owned energy and urban development company Sembcorp Industries has consolidated its presence in Oman’s utility services sector, notably by securing a new 10-year Power and Water Purchase Agreement for the Salalah Independent Water and Power Plant (IWPP), starting from April 2027.
The renewed contract, awarded recently by Nama Power and Water Procurement Company (PWP) — the sole national offtaker of power and water output — ensures the continued supply of 465 MW of electricity and 15 million imperial gallons of water per day from the integrated, gas-fired complex in Salalah beyond the expiry of the current agreement.
“The renewal reinforces our strong partnership with Nama Power and Water Procurement Company and supports the long-term sustainability of our energy portfolio in the country”, the developer said in a statement.
First brought into commercial operation in 2009, Salalah IWPP is currently the largest integrated power and water project in Salalah, providing baseload power and desalinated water to Dhofar Governorate.
The year 2025 also represents a high point in Sembcorp’s investment journey in Oman’s transition from a predominantly gas-powered power generation sector into a renewables-based sector. The company, in partnership with Jinko Power of China, brought into operation the 588 MWp Manah II Solar Independent Power Project — one of the largest utility-scale solar developments in the Sultanate of Oman. The facility, located in the Wilayat of Manah in Al Dakhiliyah Governorate, is among Sembcorp’s largest solar assets globally.
Later that year, the partnership of Sembcorp and OQ Alternative Energy was awarded the mandate to implement the 125 MW Dhofar II Wind Power Project under a 20-year Power Purchase Agreement (PPA) with Nama PWP. Slated for launch in the third quarter of 2027, the project heralds Sembcorp’s maiden foray into the wind energy sector in the Middle East.
Taken together, Sembcorp’s energy portfolio in the Sultanate of Oman has expanded to around 1.1 gigawatts of capacity, positioning the company as a key partner in the country’s lower-carbon energy transition.
Oman, along with the United Arab Emirates (UAE), represents a strategically important market for the Singaporean firm. Its portfolio in the Middle East comprises renewable energy, gas-fired power and water infrastructure assets, underpinned by long-term contracts that provide stable cash flows and support national energy transition objectives.
Sembcorp operates a diversified 28.5 GW global energy portfolio, which includes a sizable renewables component of 20.4 GW, supported by long-term contracted assets across core markets, including India and the Middle East.
Oman Observer is now on the WhatsApp channel. Click here
