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Sembcorp secures new 10-year contract for its Salalah power plant

Sembcorp Salalah Power & Water Company has obtained a new 10-year Power and Water Purchase Agreement from Nama Power and Water Procurement Company, ensuring operational continuity until 2037.

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Sembcorp Industries, through its subsidiary Sembcorp Salalah Power & Water Company SAOG, has signed a new power and water supply contract with Nama Power and Water Procurement Company. The 10-year agreement will take effect from 4 April 2027, following the expiry of the current contract that has been in place since 2012.

The contract covers a guaranteed capacity of 465 megawatts of electricity per hour and 15 million imperial gallons of water per day, equivalent to approximately 68,190 cubic metres. These volumes will be supplied by the Salalah Independent Power and Water Plant, which comprises a gas-fired combined-cycle power plant and a reverse osmosis seawater desalination unit.

Strengthening long-term contractual revenues

The signing of the agreement secures offtake commitments for the next decade, reinforcing the financial visibility of Sembcorp’s subsidiary in the country. The contract was concluded under commercially agreed terms between both parties, consolidating the relationship between the operator and the public buyer Nama Power and Water Procurement Company.

The Salalah plant, developed, owned and operated by Sembcorp Salalah Power & Water Company, plays a key role in southern Oman’s power generation capacity. Its hybrid infrastructure enables it to meet the region’s growing demand for energy and water while maintaining high operational availability.

Consolidated energy portfolio in Oman

Sembcorp currently holds a portfolio exceeding 1.0 gigawatt of energy assets in the Sultanate, comprising natural gas facilities and renewable capacity. This diversified presence allows the company to pursue its growth objectives in a market characterised by steady infrastructure demand.

The Singapore-based company, active across several segments of the energy sector in the Middle East, confirms through this agreement its commitment to remaining a key player in Oman’s energy supply chain.

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