Oman hires Serbian consultant for three gas plants up to 3,000 MW

Summary

• Nama PWP awarded Energoprojekt Entel a consultancy contract for three combined-cycle gas plants totalling 2,800-3,000 MW.
• Oman targets 30-40 per cent renewables in power generation by 2030, rising to 60-70 per cent by 2040.
• Dispatchable gas capacity is what lets the grid absorb intermittent solar and wind output.

The latest

Three new gas-fired power plants with combined capacity of 2,800 to 3,000 megawatts are moving into development in Oman, after Nama Power and Water Procurement awarded a technical consultancy contract to Serbia's Energoprojekt Entel. The Serbian company said its mandate runs from conceptual design and site selection through tender documents and the competitive bidding process to its conclusion.

Details

• The mandate: Energoprojekt Entel will serve as technical consultant on all three plants, according to the Serbian company's announcement. Its scope covers conceptual design, participation in selecting the sites, preparation of tender documents, and support for the competitive bidding process until it concludes — effectively shaping the terms developers will later bid against.
• What is undisclosed: The authorities have not disclosed the locations of the three plants, the individual generation capacity of each, or the targeted commercial operation dates. With those variables unset, the expected investment size for the programme remains undefined at this stage.
• The technology: All three projects use combined-cycle gas turbine technology, which delivers dispatchable capacity that can be adjusted upward or downward in response to swings in renewable output and surges in peak demand — the attribute that distinguishes it from intermittent solar and wind generation.
• The renewables target: Nama PWP's latest seven-year outlook sets a goal of raising renewables to 30-40 per cent of electricity generation by 2030, then to roughly 60-70 per cent by 2040. Gas capacity is being expanded alongside that portfolio rather than instead of it.
• Misfah and Duqm: The new programme follows two combined-cycle projects already under way at Misfah and Duqm, where Nama PWP signed 20-year power purchase agreements in January 2026. Misfah is planned at around 1,700 MW and Duqm at roughly 870 MW.
• The developers: The Misfah project is being developed by a consortium led by Nebras Power, while the Duqm project is led by Korea Western Power, known as KOWEPO. Together the two projects represent a combined investment of about RO 1 billion, as announced at the signing of the long-term agreements.
• The buyer: Nama PWP is the sole entity authorised to procure electricity and desalinated water capacity in Oman. It contracts with developers through competitive tenders and long-term power purchase agreements that typically run for 20 years, a structure that fixes revenue visibility for bidders.
• The demand driver: Electricity demand in the Sultanate is growing rapidly, which underpins Nama PWP's push to expand gas-fired generation capacity in parallel with its renewables build-out, according to the published material on the sector.

Background

Oman procures all grid-scale power and desalination capacity through a single buyer rather than open merchant markets. Developers compete in tenders and are paid under 20-year purchase agreements, which is how Misfah and Duqm reached financial commitment in January 2026.

Between the lines

The sequencing matters more than the megawatts. Oman is contracting dispatchable gas capacity at the same time it targets 60-70 per cent renewables by 2040, because solar and wind cannot be called upon on demand. The 2,800-3,000 MW programme is roughly the scale of Misfah and Duqm combined, suggesting the backbone needed to absorb that renewable share is being built first.

What's next

Watch for disclosure of the three sites, individual plant capacities and target operation dates, followed by the tender documents Energoprojekt Entel is preparing and the launch of competitive bidding for developers.

Source: Oman Daily Observer via ZAWYA