Muscat – Oman’s three listed power generation companies – Al Suwadi Power Company, Al Batinah Power Company and Phoenix Power Company – have received letters of award (LOAs) from Nama Power and Water Procurement Company for new power purchase agreements (PPAs), according to disclosures filed by the companies to the Muscat Stock Exchange on Tuesday.

The developments mark a key step towards extending the operational life of the three gas-fired power plants beyond their existing contracts, which are due to expire within the next few years. Nama Power and Water Procurement Company is the sole procurer of Oman’s power generation and water production capacity.

Al Suwadi Power Company and Al Batinah Power Company operate the 750MW Barka III Independent Power Plant (IPP) and the 750MW Sohar II IPP, respectively, while Phoenix Power Company operates the 2,000MW Sur IPP.

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. The new contracts are slated to run for 15 years until March 31, 2043, under mutually agreed commercial terms, according to the disclosures.

Phoenix Power also confirmed receipt of a letter of award on March 16 for a new PPA, which is expected to begin on April 1, 2029, following the expiry of its existing agreement. The contract will remain in force for 15 years until March 31, 2044, the company said in its disclosure.

In all three cases, Nama Power and Water Procurement Company has requested the companies to confirm their acceptance of the letters of award by March 18, 2026.

All three power companies said in their disclosures that they are currently reviewing the terms and preparing their responses, and will disclose any material developments in line with regulatory requirements.

Following the announcement of the letters of awards, the shares of Al Suwadi Power, Al Batinah Power and Phoenix Power sharply rose by 10% on Tuesday at the Muscat Stock Exchange.

The award of new PPAs underscores efforts by Nama Power and Water Procurement Company to ensure continuity of generation capacity and long-term supply stability.

The new agreements form part of Nama’s 2028–2029 procurement programme, which aims to secure firm power supply through new PPAs with existing generators whose current contracts expire during the 2028–2029 period.

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