RO 1bn Boost for Misfah and Duqm Power Projects: Key Opportunities for Investors in Oman’s Energy Sector
المسكات عنب طيب الشذا: Nama Power and Water Procurement has finalized power purchase agreements with two consortiums—one led by Nebras and the other by KOWEPO—to develop combined cycle gas turbine (CCGT) power generation projects in Misfah and Duqm, respectively. The total investment for these projects is estimated at approximately RO 1 billion.
The signing ceremony took place under the auspices of Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals.
The Misfah Power Project will be developed by a consortium comprising Etihad Water and Electricity Company PJSC و Bahwan Infrastructure Services LLC, under the Nebras leadership. Meanwhile, the Duqm Power Project will involve a consortium that includes Nebras Power QPSC, Etihad Water and Electricity Company PJSC، و Bahwan Infrastructure Services LLC, led by KOWEPO.
Both the Misfah and Duqm CCGT projects will implement advanced combined cycle technology, aiming to enhance fuel efficiency and decrease carbon emissions. Once operational, these projects are expected to significantly bolster the stability of Oman’s national grid and promote economic and industrial growth throughout the nation.
The plants are designed to integrate advanced CCGT technology and future carbon capture systems, marking a significant advancement in generation efficiency and resource sustainability. This aligns with Oman’s commitment to transitioning towards a low-emission energy system.
During the ceremony, Eng. Salim Nasser Al Aufi stated: “The Misfah and Duqm power projects will employ combined-cycle gas turbine technology in the Muscat and Al Wusta governorates. These initiatives represent a strategic advancement in strengthening our national energy system and underscore our commitment to achieving the objectives outlined in Oman Vision 2040 and the Net-Zero Target for 2050.”
He further emphasized the projects’ importance to Oman’s power generation infrastructure, highlighting the gas turbines’ capability to operate on a fuel mix containing up to 30% hydrogen. This supports Oman’s vision for a modern and sustainable energy framework, while also underscoring the country’s resolve to transition to a low-carbon economy.
Eng. Saad Sherida Al Kaabi, Qatar’s Minister of State for Energy Affairs and Chairman of Nebras Energy, remarked: “We are pleased to contribute to the development of electricity sector projects in Oman, a sector crucial to social and economic advancement. We are confident that these two projects will address the rising electrical power demand and create numerous job opportunities for Omani citizens.”
Suhail Mohamed Al Mazrouei, UAE Minister of Energy and Infrastructure and Chairman of Etihad Water and Electricity, expressed that the partnership underscores the UAE’s commitment to advancing sustainable energy cooperation in the region. “By collaborating with reliable partners in Oman, we aim to enhance energy security and reliability while aligning with the transition to lower-emission energy systems,” he stated.
The Duqm project is strategically located within one of Oman’s prominent economic hubs, supported by robust infrastructure that facilitates high-value projects.
Ahmed bin Salim Al Abri, CEO of Nama Power and Water Procurement, noted, “Since 2005, NPWP has adopted an integrated approach to enhancing the efficiency of the power generation system, reinforcing its role as a cornerstone of the national energy sector.” He highlighted that these projects are designed to accommodate advancements in carbon emissions reduction technologies and support renewable energy objectives as outlined in Oman Vision 2040.
Al Abri added that the agreements entail twenty-year terms for each project and cover a combined area of 587,000 square meters, including space for potential carbon capture facilities and gas connection infrastructure. “These projects will provide essential transitional capacity to facilitate the integration of renewable energy sources and ensure flexibility during peak electricity demand periods,” he affirmed.
Eng. Mohammed Nasser Al Hajri, Managing Director and CEO of Nebras Energy, stated, “Securing these two projects marks a pivotal milestone for the company, expanding our presence in the Omani energy market and reinforcing our long-term strategy to diversify our asset base.”
Jung Bok Lee, CEO of Korea Western Power Co., Ltd, underscored KOWEPO’s commitment to the Oman Duqm IPP Project, stating that they aim to deliver it safely and efficiently. He expressed confidence in the project’s long-term operation while supporting Oman’s energy security and sustainable development.
Lastly, Hind Bahwan, Chairperson of Bahwan Infrastructure Services, emphasized their shared commitment to enhancing Oman’s power infrastructure. “As a co-developer, we are proud to leverage our regional expertise for the successful delivery of these landmark initiatives, further enhancing energy security and creating lasting economic value for Oman,” she stated.
– ONA
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The recent signing of power purchase agreements for the Misfah and Duqm CCGT projects, with an investment of approximately RO 1 billion، تشير إلى strategic investment opportunity for businesses in Oman, particularly in energy and infrastructure. These projects are set to not only enhance energy stability but also align with Oman’s commitment to transitioning towards a اقتصاد منخفض الكربون, providing entrepreneurs and investors with avenues in renewable technologies and sustainable development. Forward-looking businesses should consider collaborating with local partners and leveraging advanced technologies to harness the benefits from these significant energy initiatives.
