Meed | Oman seeks interest for 2.4GW thermal project

Oman seeks interest for 2.4GW thermal project

6 December 2024

Oman's Nama Power and Water Procurement Company (Nama PWP) has invited companies to express interest in a competitive tender for the development of combined-cycle gas turbine (CCGT) plants with a total planned capacity of 2,400MW.

The project will be implemented on a build, own and operate (BOO) basis.

The state offtaker said it expects to issue the tender in the first quarter (Q1) of 2025 and award the BOO contract by Q4 of 2025.

It also expects early power in Q2 2028, with full commercial operation set for Q2 2029.

US/India-based Synergy Consulting is the client's financial adviser.

The new project presents a u-turn to a previous decision that Oman will not build any new gas-fired power generation plants, which local media reported in 2022.

A local media report citing Authority for Public Services Regulation (APSR) chairman Mansoor al-Hinai at the time stated that "a decision has been taken that meeting any growth in electricity demand in the future is from renewable sources only".

It was said that Oman will no longer float any tenders other than for solar or wind power generation plants "at this time".

IWPP/IPP extensions

In May, Nama PWP announced the award of renewed contracts for four gas-fired independent power and water projects in the sultanate.

The agreements collectively secure over 1,500MW of electricity and 200,000 cubic metres a day (cm/d) of desalinated water for up to nine years.

The contract renewals follow the expiry or expected expiry of the power- or power and water-purchase agreements for the following plants:

Barka 1 independent water and power project (IWPP): 427MW (installed power generation capacity) / 101,000 cm/d (desalination capacity)
Barka 2 IWPP: 703MW / 120,000 cm/d
Rusail independent power project (IPP): 184MW
Manah IPP: 179MW

Related read: Firms prepare Oman wind IPP bids

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Jennifer Aguinaldo