News

Under the auspices of His Excellency Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, and in the presence of His Excellency Saad Sherida Al-Kaabi, Minister of State for Energy Affairs / Chairman of the Board of Nebras Energy, and His Excellency Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure of the United Arab Emirates, Nama Power and Water Procurement has 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 OMR 1 billion.

A Nebras-led consortium consists of Etihad Water and Electricity Company PJSC and Bahwan Infrastructure Services LLC will develop the Misfah Power project. And the KOWEPO-led consortium consists of Nebras Power Q.P.S.C., Etihad Water and Electricity Company PJSC, and Bahwan Infrastructure Services LLC 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 the Sultanate.

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 the Sultanate of Oman’s move towards a low-emissions energy system. 

On this occasion, His Excellency Engineer Salim bin Nasser Al Aufi, Minister of Energy and Minerals, said: “We are pleased to witness the progress of the Misfah and Duqm power projects, 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."

His Excellency added: “These projects are integral to the ongoing efforts to strengthen the Sultanate of 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 the Sultanate of Oman’s commitment to a modern and sustainable energy system. The signing of these agreements highlights Sultanate of 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."

His Excellency Engineer Saad bin Sherida Al Kaabi, 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 the Sultanate of Oman, given the pivotal role this sector plays 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 the Sultanate and creating numerous job opportunities for Omani talents.”

His Excellency Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure of the United Arab Emirates 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 the Sultanate of 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 the Sultanate 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 playing a pivotal role in regional economic development.

Over the past two decades, Nama Power and Water Procurement has achieved a significant milestone in gas consumption efficiency, reducing the volume of gas required to generate one megawatt-hour of electricity by 47%, from 374 standard cubic metres in 2005 to just 200 standard cubic metres in 2024. Building on this progress, PWP’s ambitious plans target a further reduction in gas consumption per unit of electricity by 2031, reinforcing its commitment to operational excellence and environmental sustainability. 

Nama Power and Water Procurement reaffirmed its commitment to developing world-class energy infrastructure through strategic partnerships with leading regional and international developers, reflecting its ongoing efforts to secure reliable power supplies while supporting the Sultanate of Oman’s long-term energy transition and sustainability goals.

The projects are being developed in collaboration with experienced international consortium, bringing global expertise, advanced technology, and best practices to the Sultanate of Oman’s power sector.

Nama Power and Water Procurement continue to play a central role in planning, procuring, and enabling investment in power and water projects, contributing to energy security and sustainable development in the Sultanate of Oman.

Ahmed bin Salim Al Abri, Chief Executive Officer at Nama Power and Water Procurement, said: 

“Since 2005, PWP has pursued an integrated and forward-looking approach to enhancing the efficiency of the power generation system in the Sultanate of 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 the Sultanate’s structured transition towards net zero by 2050”.

Ahmed 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 the Sultanate of 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”.

Eng. Mohammed bin Nasser 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 Co., Ltd:

“KOWEPO is honored 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:

“We are honored to partner with Nebras Power, KOWEPO, and EtihadWE in 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 the Sultanate’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 play a key role in enhancing energy security and creating lasting economic value for Oman and its people.”