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.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

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.

GOIL is investing $50mn to expand its LPG storage capacity in response to sustained demand growth and to improve national supply security.
QatarEnergy continues its international expansion by acquiring 27% of the offshore North Cleopatra block from Shell, amid Egypt’s strategic push to revive gas exploration in the Eastern Mediterranean.
An analysis by Wood Mackenzie shows that expanding UK oil and gas production would reduce costs and emissions while remaining within international climate targets.
Polish authorities have 40 days to decide on the extradition of a Ukrainian accused of participating in the 2022 sabotage of the Nord Stream pipelines in the Baltic Sea.
The Japanese company has completed the first phase of a tender for five annual cargoes of liquefied natural gas over seven years starting in April 2027, amid a gradual contractual renewal process.
Baker Hughes has secured a contract from Bechtel to provide gas turbines and compressors for the second phase of Sempra Infrastructure’s LNG export project in Texas.
Targa Resources will build a 500,000 barrels-per-day pipeline in the Permian Basin to connect its assets to Mont Belvieu, strengthening its logistics network with commissioning scheduled for the third quarter of 2027.
Brazilian holding J&F Investimentos is in talks to acquire EDF’s Norte Fluminense thermal plant, valued up to BRL2bn ($374 million), as energy-related M&A activity surges across the country.
Chevron has appointed Bank of America to manage the sale of pipeline infrastructure in the Denver-Julesburg basin, targeting a valuation of over $2 billion, according to sources familiar with the matter.
Hungary has signed a ten-year agreement with Engie for the annual import of 400 mn m³ of liquefied natural gas starting in 2028, reinforcing its energy diversification strategy despite its ongoing reliance on Russian gas.
Wanted by Germany for his alleged role in the 2022 sabotage of the Nord Stream pipelines, a Ukrainian has been arrested in Poland and placed in provisional detention pending possible extradition.
An unprecedented overnight offensive targeted gas infrastructure in Ukraine, damaging several key facilities in the Kharkiv and Poltava regions, according to Ukrainian authorities.
The Dunkirk LNG terminal, the second largest in continental Europe, is seeing reduced capacity due to a nationwide strike disrupting all French LNG infrastructure.
Russia’s liquefied natural gas output will increase steadily through 2027 under the national energy development plan, despite a 6% drop recorded in the first eight months of 2024.
QatarEnergy has signed a long-term contract with Messer to supply 100 million cubic feet of helium per year, strengthening Doha’s position as a key player in this strategic market.
US-based fund KKR has acquired a minority interest in the gas pipeline assets of Abu Dhabi oil operator ADNOC, continuing its strategy to expand energy infrastructure investments in the Middle East.
Shell UK has started production at the Victory field north of Shetland, integrating its volumes into the national gas network through existing infrastructure to strengthen UK supply.
Exxon is seeking direct support from the Mozambican government to secure its Rovuma LNG project, as Islamist violence continues to hinder investment in the country’s north.
Chevron has signed a $690 million agreement with Equatorial Guinea to develop gas from the Aseng field, amid a long-term decline in national oil production and a search for new economic drivers.
TotalEnergies has set 2029 as the restart date for its Mozambique LNG project, frozen since 2021, delaying the exploitation of a strategic investment worth more than $20bn in liquefied natural gas.