Sembcorp’s Energy Portfolio in Oman Expands to 1.1 GW: Implications for Investors and Businesses in the Renewable Sector
MUSCAT, APRIL 25 – Sembcorp Industries, a state-owned energy and urban development company from Singapore, has strengthened its position in Oman’s utility services sector by securing a new 10-year Power and Water Purchase Agreement for the Salalah Independent Water and Power Plant (IWPP), effective from April 2027.
The recently awarded contract, provided by Nama Power and Water Procurement Company (PWP), the national offtaker of power and water, guarantees a continuous supply of 465 MW of electricity and 15 million imperial gallons of water per day from the integrated gas-fired facility located in Salalah. This agreement will extend the service beyond the expiration of the current contract.
In a statement, Sembcorp remarked, “The renewal reinforces our strong partnership with Nama Power and Water Procurement Company and supports the long-term sustainability of our energy portfolio in the country.”
The Salalah IWPP, which began commercial operations in 2009, is the largest integrated power and water project in the region, providing reliable power and desalinated water to the Dhofar Governorate.
The year 2025 marks a significant milestone for Sembcorp’s investments in Oman, as the country transitions from a gas-dominant power generation model to a renewable energy-based system. In collaboration with China’s Jinko Power, Sembcorp launched the 588 MWp Manah II Solar Independent Power Project, one of the largest utility-scale solar initiatives in Oman. This facility, situated in the Wilayat of Manah in Al Dakhiliyah Governorate, is among Sembcorp’s largest solar assets worldwide.
Later in 2025, Sembcorp, in partnership with OQ Alternative Energy, was awarded a 20-year Power Purchase Agreement (PPA) for the 125 MW Dhofar II Wind Power Project, expected to commence in the third quarter of 2027. This venture marks Sembcorp’s first entry into the wind energy sector in the Middle East.
Collectively, Sembcorp’s energy portfolio in Oman now exceeds 1.1 gigawatts of capacity, establishing the company as a vital contributor to the nation’s lower-carbon energy transition.
Oman and the United Arab Emirates (UAE) represent strategically important markets for Sembcorp. The company’s Middle East portfolio includes renewable energy, gas-fired power, and water infrastructure assets, all supported by long-term agreements that enhance cash flow stability and align with national energy transition goals.
Globally, Sembcorp manages a diversified energy portfolio of 28.5 GW, with a substantial renewables component of 20.4 GW, backed by long-term contracts across key markets, including India and the Middle East.
Special Analysis by Omanet | Navigate Oman’s Market
The recent 10-year power and water contract secured by Sembcorp Industries marks a significant boost for Oman’s utility sector, reinforcing the nation’s commitment to sustainable energy practices. This consolidation presents opportunities for investor partnerships in emerging renewable projects, particularly as Oman shifts from gas to a more diverse energy mix. Smart investors should now prioritize ventures in renewable infrastructure, capitalizing on long-term agreements that promise stable returns and align with Oman’s energy transition goals.
