Prime Highlights
- Nama PWP has extended agreements with three power producers, securing 3,500MW capacity for 15 more years.
- The deals ensure long-term revenue stability and continued power supply under agreed commercial terms.
Key Facts
- Nama PWP is the single buyer and procurer of electricity and desalinated water capacity in Oman.
- Phoenix Power operates a 2,000MW plant, while Al Batinah and Al Suwadi each run 745MW facilities.
Background
Oman’s Nama Power and Water Procurement Company (PWP) has signed new agreements to buy electricity from three independent power producers. These agreements will give the company a total power capacity of about 3,500 megawatts. The agreements extend the operational life of the plants for another 15 years after their current contracts expire, ensuring long-term power supply stability in the country.
All deals center on Phoenix Power, Al Batinah Power, and Al Suwadi Power, which are into gas-based power production. Phoenix Power runs one of the largest facilities in Sur with a capacity of 2,000MW. Meanwhile, Al Batinah Power and Al Suwadi Power each operate plants with a capacity of 745MW in Sohar and Barka, respectively.
Both Al Batinah Power and Al Suwadi Power confirmed that they received letters of award in the second half of March. Their new agreements are expected to begin in April, following the end of their existing contracts and will run for 15 years. Phoenix Power’s new agreement is set to begin in April of the following year after its current deal expires, also lasting 15 years.
The companies established that their agreements provide ongoing power offtake rights which follow the specified commercial terms. The extensions will create long-term revenue stability, which will enhance their partnership with Nama PWP while supporting their operational sustainability efforts.
Phoenix Power said the deal will allow it to supply close to 2,000 megawatts of electricity. The company added that this will improve its financial position and help it run its operations more smoothly.
The move also supports Oman’s energy plan, which focuses on using existing gas-based plants to ensure a steady and reliable power supply. At the same time, it helps build long-term partnerships with key energy companies.
