Duqm Power Plant $385 Million EPC Deal: What It Means for Investment and Energy Growth in Oman
MUSCAT, JUNE 16 — Oman’s 870-megawatt Duqm gas-fired power plant has secured a significant $385 million engineering, procurement, and construction (EPC) contract, marking a major advancement in one of the Sultanate’s largest new power generation initiatives.
South Korea’s Doosan Enerbility announced that it has signed the contract with Coastal Power SAOC, the project entity established to develop the plant within the Duqm Special Economic Zone. Valued at approximately KRW 530 billion ($385 million), the project is scheduled for completion by 2029.
The Duqm power plant is being developed by a consortium that includes Korea Western Power (KOWEPO), Qatar’s Nebras Power, EUDC—the investment arm of the UAE’s Etihad Water and Electricity—and Oman’s Bahwan Infrastructure Services.
Doosan Enerbility will partner with China’s SEPCO-3 to deliver the project on a turnkey basis, covering design, procurement, and construction. The South Korean firm will also manufacture and supply critical equipment, such as steam turbines and generators.
Situated about 550 kilometers south of Muscat, the combined-cycle plant will have a capacity of 870 MW. It aims to meet rising electricity demand in southern Oman while supporting industrial growth within the Duqm Special Economic Zone.
This project aligns with Oman’s wider strategy to expand its electricity generation capacity in response to growing industrial and economic development. Earlier this year, Nama Power and Water Procurement awarded long-term power purchase agreements for the Duqm and Misfah independent power projects.
Together, these projects represent investments totaling around RO1 billion and are expected to add over 2 gigawatts of capacity to Oman’s power network.
Lee Hyun-ho, Head of the Plant EPC Business Group at Doosan Enerbility, stated, “We secured this project based on our extensive project execution experience and EPC capabilities in the Middle East. With continued demand for reliable power supply infrastructure across the region, including Oman, we intend to pursue further opportunities by successfully delivering this project.”
Commercial operations at the Duqm power plant are anticipated to begin in 2029.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s $385 million Duqm gas-fired power plant project underscores a significant opportunity for energy sector growth, directly supporting industrial expansion in the Duqm Special Economic Zone. For businesses and investors, this development signals rising demand in energy infrastructure, creating fertile ground for partnerships and long-term investments in power and utilities. Smart investors should closely monitor related industrial growth and government initiatives, as stable power supply will be critical to Oman’s economic diversification strategy through 2029 and beyond.
