Sembcorp renews offtake deal for Salalah IWPP in Oman
30 September 2025
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Singapore-based Sembcorp Industries has signed a new 10-year power and water purchase agreement for its Salalah independent water and power plant (IWPP) in Oman.
The contract, awarded by Nama Power & Water Procurement Company (Nama PWP), will commence on 4 April 2027, following the expiry of the earlier 15-year contract on 3 April.
Located between Taqah and Mirbat in Oman, the plant has been in full commercial operation since May 2012. It has a net capacity of 489MW and a contracted capacity of 445MW. It also has a contracted water capacity of 15 million imperial gallons (69,000 cubic metres) a day.
Under the new deal, Sembcorp Salalah Power & Water Company, a subsidiary of Sembcorp Industries, will supply 465MW of power per hour and 15 million imperial gallons (68,190 cubic metres) of water a day from the Salalah plant.
According to Sembcorp, it has invested approximately $1bn to develop, finance, build, own and operate the plant.
The facility consists of a gas-fired combined-cycle power station and a reverse osmosis seawater desalination unit. The agreement ensures continued offtake under mutually agreed commercial terms.
Sembcorp currently operates more than 1GW of energy assets in Oman, spanning both the gas and renewable energy domains.
This includes Oman’s Manah 2 solar independent power project (IPP), which commenced commercial operations at the beginning of the year.
In March 2023, Nama PWP signed a 20-year power-purchase agreement (PPA) for the 588MW solar IPP with a team comprising Sembcorp and Hong Kong-based Jinko Power Technology.
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