Muscat – Nama Power and Water Procurement (PWP) signed agreements on Thursday worth RO1bn with two international consortia to develop new power generation projects in Misfah and Duqm, improving the sultanate’s electricity supply and supporting long-term energy transition goals.
The Misfah Power Project will be developed by a consortium led by Qatar’s Nebras Energy, comprising Etihad Water and Electricity Company and Bahwan Infrastructure Services. The Duqm Power Project will be developed by a consortium led by Korea Western Power, which includes Nebras Energy, Etihad Water and Electricity Company, and Bahwan Infrastructure Services.
Both projects will use combined cycle gas turbine technology, aimed at improving fuel efficiency and reducing carbon emissions. Once operational, the plants are expected to enhance grid stability and support economic and industrial growth across the sultanate, PWP stated.
The facilities are designed to allow future integration of carbon capture systems and will be capable of operating on a fuel mix containing up to 30% hydrogen, aligning with Oman’s move towards a lower-emissions energy system.
H E Salim bin Nasser al Aufi, Minister of Energy and Minerals, said the projects mark a strategic step in strengthening the national energy system. “These projects represent a clear commitment to the objectives of Oman Vision 2040 and the Net-Zero Target 2050,” he said, adding that deployment of high-efficiency technologies would reinforce the country’s power generation infrastructure.
Saad bin Sherida al Kaabi, Minister of State for Energy Affairs of Qatar and Chairman of Nebras Energy, said the company was pleased to contribute to Oman’s electricity sector. “The two projects will play an important role in meeting growing demand for power and creating job opportunities for Omani talent,” he said.
Suhail Mohamed al Mazrouei, Minister of Energy and Infrastructure of the UAE and Chairman of Etihad Water and Electricity Company, said the partnership reflected regional cooperation in sustainable energy. “These projects support reliable and flexible generation capacity while remaining aligned with the transition to lower-emissions systems,” he said.
The Misfah project is located near Oman’s largest electricity demand centres to enhance supply reliability, while the Duqm project is positioned within one of the country’s key economic hubs, supporting industrial development in Al Wusta.
According to Ahmed bin Salim al Abri, CEO of Nama PWP, each project would operate under a 20-year power purchase agreement. “With a combined land area of 587,000sqm, including space for future carbon capture and gas infrastructure, the projects reflect a long-term approach to power generation,” he said.
Over the past two decades, PWP has achieved a significant milestone in gas consumption efficiency, reducing the volume of gas required to generate 1 MWh of electricity by 47%, from 374 standard m3 in 2005 to 200 standard m3 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.
