Oman’s Nama Power and Water Procurement Company (PWP) has issued letters of award (LOA) for new power purchase agreements (PPAs) to three independent power producers (IPPs) - Phoenix Power Company, Al Batinah Power Company and Al Suwadi Power Company - according to disclosures to the Muscat Stock Exchange.

The proposed agreements will extend the operating life of the gas-fired power plants beyond the expiry of their current PPAs.

All three companies said the new PPAs will run for 15 years under mutually agreed commercial terms, with acceptance of the LOA requested by 18 March 2026.

For Al Suwadi Power Company and Al Batinah Power Company, the new PPAs will take effect on 1 April 2028 and remain valid until 31 March 2043.

Phoenix Power Company said its new agreement will run from 1 April 2029 until 31 March 2044.

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

The new agreements form part of PWP’s Power 2028–2029 procurement programme, which aims to secure around 3,500MW of firm power supply through new PPAs with existing generators whose current contracts expire during the 2028–2029 period.

Major shareholders in Al Suwadi Power Company and Al Batinah Power Company include Kahrabel FZE (ENGIE), Middle East Investment Company (Suhail Bahwan Group), Sojitz Global Investment B.V. (Sojitz Corporation), SEP International Netherlands B.V. (Shikoku Electric Power) and Oman’s Public Authority for Social Insurance.

In Phoenix Power Company, the major shareholders are cAxia Power Holdings B.V. (Marubeni Corporation), JERA Power Management Middle East B.V. (JERA), Nebras Power of Qatar and Middle East Investment Company (Suhail Bahwan Group).

In Oman, IPP projects are established under a Build, Own, Operate (BOO) scheme, which enables them to be operated beyond the Power Purchase Agreement (PPA) term of 15 years, either by extending the PPA or by selling the power into an electricity pool which may exist at that time, according to Phoenix Power Company's website. 

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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