Nama Power and Water Procurement Company (Nama PWP) is set to ink new power purchase agreements with Oman's top listed power generation companies – Al Suwadi, Al Batinah and Phoenix Power - for three gas-fired Independent Power Projects (IPPs) with a combined 3,500 MW capacity in the sultanate.
All the three companies have secured new PPAs that will extend their operational lives for another 15 years upon the expiry of their current contracts with Nama PWP, the single buyer and procurer of electricity and desalinated water capacity.
Phoenix Power, backed by AXIA Power as the anchor investor, operates one of Oman’s largest gas-fired IPPs with a 2,000MW capacity, in Sur, while Al Suwadi Power Company and Al Batinah, both backed by French global energy giant Engie, each operate a 745MW plant in Barka and Suhar respectively.
Both Al Suwadi Power and Al Batinah Power said they received letters of award on March 16, 2026, for proposed new PPAs that are expected to commence on April 1, 2028, immediately after the expiry of their current agreements.
Al Suwadi Power said it had formally accepted the award on March 18 and is working with Nama PWP to complete approvals and sign the agreement.
"Under the terms of the award, the plant’s contracted capacity will be 746.53 MW, ensuring continued power offtake under agreed commercial terms and providing long-term revenue visibility, said the company in its bourse filing.
The agreement also supports the company’s long-term strategy in Oman and strengthens its partnership with the state procurement entity, it stated.
The new contracts are slated to run for 15 years until March 31, 2043, under mutually agreed commercial terms, according to the disclosures.
Phoenix Power also confirmed receipt of a letter of award on March 16 for a new PPA, which is expected to begin on April 1, 2029.
Nama PWP said these new agreements form part of its 2028–2029 procurement programme, which aims to secure firm power supply through new PPAs with existing generators whose current contracts expire during the 2028–2029 period.
It will help ensure reliable electricity supply in Oman by keeping well-performing plants operational as older units retire and new, particularly renewable, capacity comes online.
The agreements also enhance cost efficiency through lower fuel consumption and competitive generation costs, support grid stability amidst rising renewable penetration and provide flexibility during the country’s energy transition, it added.-TradeArabia News Service