Oman picks consortia for two power generation projects

Oman’s state-run Nama Power and Water Procurement Company (Nama PWP) has awarded contracts worth OMR1 billion ($2.6 billion) to develop two power generation projects in the sultanate.

The combined-cycle gas turbine power projects will be developed by a consortium led by Qatar’s Nebras Energy and another led by Korea Western Power in Misfah in the Western Hajar mountains and Duqm, a coastal industrial town, the state-run Oman News Agency reported.

A Nebras-led consortium comprising the UAE’s Etihad Water and Electricity Company and Oman’s Bahwan Infrastructure Services will develop the 1.7 gigawatt (GW) Misfah power project. 

The Korea Western-led consortium, which consists of Nebras Power, Etihad Water and Electricity Company and Bahwan Infrastructure Services, will develop the 877 megawatt Duqm power project.

Nebras Energy acquired a 49 percent stake in the Misfah project and a 30 percent stake in the Duqm project, the state-owned Qatar News Agency (QNA) reported.

Construction works on both projects are scheduled to commence later this month. 

Initial commercial operation is anticipated to start in April 2028, with full commercial operation likely by April 2029, QNA said.

“With power purchase agreements of 20 years for each project, and a combined land area of 587,000 square metres, these projects reflect a long-term, future-ready approach to power generation,” said Ahmed bin Salim Al Abri, CEO at Nama Power and Water Procurement.

Space has been allocated for future carbon capture facilities and gas connection infrastructure, he said.

The two projects will utilise advanced technology to enhance fuel efficiency and reduce carbon emissions. Once operational, they will contribute to the stability of the national grid and support economic and industrial growth in the sultanate.

In November, the International Monetary Fund said Oman’s economy has remained resilient in 2025 despite global volatility, regional tensions and fluctuations in oil prices.

The country’s finance ministry has projected a budget deficit of OMR530 million ($1.4 billion) for 2026, a 14.5 percent decline from last year.

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This week, Nama PWP said it plans to bring six solar power plants with a combined capacity of 6GW online in 2030 and 2031.

In his National Day speech in November, Sultan Haitham bin Tariq called for prioritising renewable energy as the country works to diversify its economy. 

“Renewable energy should not be only about a clean environment but our way of life and we should go all out for it to make sure we get it right for the sake of the future of our country,” the Omani ruler said.

The Gulf state plans to achieve net zero gas emissions by 2050 and aims to produce 30 percent of its electricity using renewable sources by 2030 and reach 100 percent clean energy capacity by 2050.