Energy companies listed on the Muscat Stock Exchange operating in electricity and water production have announced plans to sign new long-term power purchase agreements with Nama Power and Water Procurement Company.
The agreements, spanning 15 years, are designed to enhance operational sustainability, strengthen financial stability, and secure steady revenues for the companies.
Al Suwadi Power, Al Batinah Power, and Al Anqa Power confirmed in separate disclosures that they have accepted letters of assignment from Nama Power and are working closely with the company to finalize the signing procedures.
The agreements with Al Suwadi and Al Batinah Power Companies will come into effect on 1 April 2028, following the expiry of existing contracts, and remain valid until 31 March 2043. The agreement with Al Anqa Power will commence on 1 April 2029 and continue until 31 March 2044.
The move aims to bolster energy sector reliability, particularly during peak demand periods, while supporting the growing electricity needs driven by industrial expansion, population growth, and urban development.
The agreements also align with Oman’s renewable energy initiatives, as solar and wind projects accelerate to reduce carbon emissions. Electricity production in the country increased by 5 percent last year, reaching more than 51,000 gigawatt-hours, up from 49,000 in 2024 and 43,900 in 2023.
Over the past two years, Nama Power and Water Procurement Company has actively renewed agreements with major electricity producers, including Sohar Power, Barka Water & Power, and Sembcorp Salalah, contributing to stable energy supplies and enhanced sector security.
Sohar Power, which signed a nine-year agreement in December 2024, has restarted its three open-cycle gas turbines and expects to fully repay principal debt this year while preparing to distribute profits to shareholders.
Sembcorp Salalah and Barka Water & Power emphasized that their new agreements will support operational efficiency, financial stability, and long-term shareholder value.
Oman has 12 energy companies listed on the Muscat Stock Exchange. Most recorded increased net profits in 2025, with preliminary figures showing combined profits of $279.76 million (OMR 107.6 million), compared to $290.2 million (OMR 111.6 million) in 2024.
