Oman's Nama Power and Water Procurement Company (PWP) has signed new power purchase agreements with three independent power producers - Phoenix, Al Batinah and Al Suwadi Power - for gas-fired power projects with a combined capacity of 3,500MW in the sultanate.

With this deal, all the three companies have secured extension of 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. These would then continue for a period of 15 years until March 31, 2044, said Nama in a statement.

Al Suwadi Power said the new PPA inked with Nama PWP ensures the continued offtake of power under mutually agreed commercial terms, strengthens the strategic partnership between ASPC and PWP, provides long-term revenue visibility, supports operational sustainability, and aligns with the company’s long-term strategy in Oman. 

The new agreement would commence on April 1, 2028, immediately after the expiry of the current agreement, and would continue for a period of 15 years until March 31, 2043.

Phoenix Power Company said the new agreement provides for the continuation of the purchase of 1,978.41 to 2,074.13 megawatts of power under agreed commercial terms, further strengthening the strategic partnership between the Company and PWP. 

It also ensures long-term financial stability and supports the company’s future operational sustainability. 

The new agreement would commence on April 1, 2029, immediately after the expiry of the current agreement, and would continue for a period of 15 years until March 31, 2044.-TradeArabia News Service