Nama Power and Water Procurement signed power purchase agreements with a Nebras-led consortium and a KOWEPO-led consortium for the development of combined cycle gas turbine (CCGT) power generation projects in Misfah and Duqm respectively, with a total investment value of approximately RO 1 billion ($2.6 billion).
A Nebras-led
consortium consists of Etihad Water and Electricity Company and Bahwan
Infrastructure Services will develop the Misfah Power project, reported ONA.
And the KOWEPO-led
consortium consists of Nebras Power, Etihad Water and Electricity Company, and
Bahwan Infrastructure Services will develop the Duqm power project.
The Misfah and Duqm
CCGT projects will utilise advanced combined cycle technology, enhance fuel
efficiency and reduce carbon emissions.
Once operational, the
projects are expected to contribute significantly to the stability of the
national grid and support economic and industrial growth across Oman.
The plants will
utilise advanced CCGT technology and are designed to be equipped for
integration with carbon capture systems in the future, representing a
qualitative leap in generation efficiency and resource sustainability while
supporting Oman’s move towards a low-emissions energy system.
Salim Al Aufi,
Minister of Energy and Minerals, said: “The Misfah and Duqm power projects will
be utilising combined-cycle gas turbine technology in the governorates of
Muscat and Al Wusta. These two projects represent a strategic step in
strengthening the national energy system and reflect our commitment to
achieving the objectives of Oman Vision 2040 and the Net-Zero Target
2050."
He added: “These
projects are integral to the ongoing efforts to strengthen Oman’s power
generation infrastructure through the deployment of high-efficiency
technologies. The gas turbines are designed to operate on a fuel mix containing
up to 30% hydrogen, advancing Oman’s commitment to a modern and sustainable
energy system. The signing of these agreements highlights Oman’s resolve to
accelerate its transition to a low-carbon economy, reinforce its role as a
regional leader in clean energy, attract strategic investments, and support
sustainable development initiatives, delivering tangible benefits for the
environment, economy, and society."
Saad Al Kaabi, Qatar’s
Minister of State for Energy Affairs and Chairman of the Board of Directors of
Nebras Energy, stated: “We are pleased to be an active part of the efforts to
develop electricity sector projects in Oman, given the pivotal role this sector
undertakes in advancing social and economic development. We have great
confidence in the contributions the two projects will have towards meeting the
increasing demand for electrical power in Oman and creating numerous job
opportunities for Omani talents.”
Suhail Al Mazrouei,
Minister of Energy and Infrastructure of the UAE and Chairman of the Board of
Directors of Etihad Water and Electricity, said: “This partnership reflects the
UAE’s commitment to advancing mutually beneficial and sustainable energy
cooperation across the region. By working with trusted partners in Oman, we are
supporting the development of highly efficient, flexible generation capacity
that strengthens energy security and reliability, while remaining aligned with
the long-term transition to lower-emissions energy systems. We value the strong
bilateral ties between our two countries and look forward to continued
collaboration that delivers tangible outcomes for sustainable growth.”
The Misfah project has
been strategically located at the heart of Oman’s largest electricity demand
centres, enhancing supply reliability and addressing continued growth in
consumption.
Meanwhile, the Duqm
project has been positioned within one of Oman’s most promising economic hubs,
benefiting from robust infrastructure capable of supporting high-value projects
and ambitious industries, while undertaking a pivotal role in regional economic
development.
Ahmed Al Abri, Chief
Executive Officer at Nama Power and Water Procurement, said: “Since 2005, NPWP
has pursued an integrated and forward-looking approach to enhancing the
efficiency of the power generation system in Oman, reinforcing its role as a
cornerstone of the national energy sector. This approach is underpinned by the
gradual adoption of the latest and most efficient generation and operational
technologies, effective electricity demand management, and the development of
innovative solutions that support renewable energy targets under Oman Vision
2040 and Oman’s structured transition towards net zero by 2050”.
Al Abri added: “The
Misfah and Duqm projects have been designed to accommodate future advancements
in carbon emissions reduction technologies, including enabling a higher
proportion of hydrogen within the gas mix, in line with Oman’s commitment to
achieving net zero by 2050. With power purchase agreements of 20 years for each
project, and a combined land area of 587 thousand square metres, including
space allocated for future carbon capture facilities and gas connection infrastructure,
these projects reflect a long-term, future-ready approach to power generation.
The advanced and highly efficient Misfah and Duqm plants will provide critical
transitional capacity to support the large-scale integration of renewable
energy sources, while ensuring the flexibility required to meet periods of peak
electricity demand. High-efficiency, flexible gas-fired generation will remain
a cornerstone in maintaining the security and reliability of electricity
supplies as the energy sector continues its transition towards a
renewables-focused model”.
Mohammed Al Hajri,
Managing Director and CEO of Nebras Energy, stated: “Securing these two
projects marks a significant milestone for the company and represents a
strategic expansion of our presence in the Omani energy market. This
achievement strengthens our long‑term strategy to grow and diversify our asset
base, both technologically and geographically, by investing in projects that
deliver strong and sustainable economic value.
Jung Bok Lee, CEO of
Korea Western Power added” “KOWEPO is honoured to be awarded the Oman Duqm IPP
Project and is committed to delivering it safely and to the highest standards.
Together with our consortium partners—Nebras Power, EtihadWE, and Bahwan
Infrastructure Services —we will ensure stable and reliable long-term operation
of the plant while supporting Oman’s energy security and sustainable
development in Duqm. Building on our experience from the Manah 500MW Solar
Power Project, and backed by over 30 years of expertise across coal, gas, and
renewables, KOWEPO will work closely with the Government of Oman and local
stakeholders to make Duqm IPP a flagship success.”
Hind Bahwan, Chairperson of Bahwan Infrastructure Services noted: “We are honoured to partner with Nebras Power, KOWEPO, and EtihadWEin developing these prestigious gas power projects. This award reflects our shared commitment to strengthening Oman’s power infrastructure and delivering reliable generation capacity in support of Oman’s long-term vision. As a co-developer, Bahwan Infrastructure Services is proud to bring our regional expertise and understanding of local project execution to support the successful delivery of these landmark initiatives. These projects will undertake a key role in enhancing energy security and creating lasting economic value for Oman and its people.”