MUSCAT, SEPTEMBER 5
Construction has commenced on the Duqm Independent Power Project (IPP), a major 890 MW gas-fired combined-cycle power plant being developed in the Special Economic Zone at Duqm (SEZAD), marking the start of implementation of one of Oman’s newest large-scale generation projects.
The project company is Coastal Power SAOC representing a multinational consortium comprising South Korea’s Korea Western Power Co (KOWEPO), Qatar’s Nebras Energy, UAE-based Etihad Water and Electricity Company PJSC and Oman’s Bahwan Infrastructure Services LLC.
The project was awarded by Nama Power and Water Procurement Company (Nama PWP), Oman’s single procurer of power and water capacity and output, in January 2026 as part of a wider programme to strengthen firm generation capacity amidst rising electricity demand and the rapid expansion of renewable energy across the Sultanate of Oman.
Significantly, the project is being developed under a long-term power purchase arrangement with Nama PWP and forms part of a roughly RO 1 billion investment programme covering new CCGT capacity at Al Duqm and Misfah. The plants will use high-efficiency combined-cycle technology, enabling greater electricity output from natural gas while reducing emissions relative to conventional thermal generation. Provision is also envisaged for the potential future integration of carbon-capture technology.
The Al Duqm project has now progressed into its engineering, procurement and construction phase. Power Construction Corporation of China Ltd (PowerChina), a major Chinese state-owned engineering and construction group and Doosan Heavy Industries Muscat SPC have been named as EPC contractors. South Korea’s Doosan Enerbility announced in June that it had secured a KRW 530 billion contract, valued at around $350 million, for its role in the development. Its scope includes the supply of key generating equipment, notably steam turbines and generators. WSP International is serving as project consultant.
The new plant is targeted for completion in 2029 and will provide a significant source of dispatchable electricity for Al Duqm and the wider national grid. Its development comes as the industrial hub attracts energy-intensive investments spanning refining, petrochemicals, minerals, green steel and downstream manufacturing.
Importantly, the CCGT facility will provide firm generation capable of complementing the growing volumes of intermittent solar and wind power entering Oman’s electricity system, supporting round-the-clock supply as the country advances its energy-transition programme.
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