Singapore-based Sembcorp Industries, through its subsidiary Sembcorp Salalah Power & Water Company SAOG (SSPWC), has secured a new 10-year Power and Water Purchase Agreement (PWPA) from Oman’s Nama Power and Water Procurement Company (Nama PWP), the companies announced on Saturday.
The new contract, set to begin on April 4, 2027, will follow the expiration of the current 15-year agreement on April 3, 2027. Under the terms of the deal, SSPWC will supply 465 megawatts of electricity per hour and 15 million imperial gallons (approximately 68,190 cubic metres) of desalinated water per day from its Salalah Independent Water and Power Plant.
The facility, which combines a gas-fired combined cycle power plant with a reverse osmosis seawater desalination unit, is developed, owned, and operated by SSPWC.
The new agreement ensures continued offtake under mutually agreed commercial terms and reinforces the strategic partnership between SSPWC and Nama PWP.
Sembcorp said the award strengthens long-term revenue visibility and supports operational sustainability for its Oman portfolio, which includes over 1.0 gigawatt of energy assets spanning gas and renewables.
The deal comes amid growing regional efforts to secure reliable energy and water supplies while advancing decarbonization goals.
Oman has been actively expanding its independent power and water production capacity to meet rising demand and support economic diversification.
Sembcorp’s continued investment in Oman aligns with its broader strategy to grow its international footprint and enhance its presence in high-growth markets across the Middle East.
Nama PWP, the sole procurer of electricity and water in Oman, has been instrumental in driving private sector participation in the country’s utilities sector, awarding long-term contracts to independent producers under a competitive framework.
Financial terms of the new PWPA were not disclosed.
