Oman secures $2.6bn for Misfah, Duqm CCGT power projects to boost energy security

Oman has secured around OMR1 billion ($2.6 billion) in investment to develop two major combined cycle gas turbine (CCGT) power projects in Misfah and Duqm, following the signing of long-term power purchase agreements aimed at strengthening the country’s electricity system and supporting its energy transition.

Nama Power and Water Procurement signed the agreements with two international consortia for the delivery of the projects, which will be developed using advanced CCGT technology to enhance fuel efficiency, improve operational flexibility and reduce carbon emissions.

The signing ceremony was held under the auspices of Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals.

Misfah-Duqm CCGT projects signed

A Nebras-led consortium comprising Etihad Water and Electricity Company and Bahwan Infrastructure Services will develop the Misfah power project, while the Duqm project will be delivered by a KOWEPO-led consortium that includes Nebras Power, Etihad Water and Electricity Company and Bahwan Infrastructure Services.

Once operational, the two plants are expected to make a significant contribution to the stability of Oman’s national grid and support economic and industrial development across the Sultanate. Both facilities will be designed to integrate advanced efficiency technologies and to accommodate future carbon capture systems, reinforcing Oman’s move towards a lower-emissions energy system.

“The Misfah and Duqm power projects will be utilising combined-cycle gas turbine technology in the governorates of Muscat and Al Wusta,” said Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals.

“These two projects represent a strategic step in strengthening the national energy system and reflect our commitment to achieving the objectives of Oman Vision 2040 and the Net-Zero Target 2050.”

He added that the gas turbines are designed to operate on a fuel mix containing up to 30 per cent hydrogen, underlining Oman’s commitment to a modern and sustainable energy system.

The projects have been strategically located to meet demand and support regional development. Misfah sits at the heart of Oman’s largest electricity demand centre, while Duqm is positioned within one of the country’s most promising economic hubs, supported by robust infrastructure and industrial ambitions.

Ahmed bin Salim Al Abri, Chief Executive Officer of Nama Power and Water Procurement, said the projects reflect a long-term, future-ready approach to power generation. He noted that the 20-year power purchase agreements and the allocation of space for future carbon capture facilities would provide critical transitional capacity as renewable energy is scaled up, while ensuring the flexibility needed to meet peak electricity demand.

Together, the Misfah and Duqm projects underline Oman’s strategy of combining high-efficiency gas-fired generation with longer-term decarbonisation goals, reinforcing energy security while advancing the country’s transition towards a low-carbon economy.