Sembcorp Industries has secured a 10-year power agreement in Oman through its subsidiary, Sembcorp Salalah Power & Water Company. This agreement covers the purchase of both electricity and desalinated water from the Salalah plant. The contract follows the expiration of the current 15-year agreement and ensures continued off-take under mutually agreed commercial terms. Consequently, the partnership reinforces Sembcorp’s strategic relationship with Nama Power and Water Procurement (Nama PWP).
The Salalah plant generates 465 megawatts of electricity per hour and produces 68,190 cubic meters of water daily. In addition, the plant combines electricity generation and seawater desalination to meet Oman’s growing energy and water demands. This power agreement expands Sembcorp’s long-term revenue visibility while supporting operational sustainability. Furthermore, the deal highlights the company’s ability to manage critical energy infrastructure efficiently.
Sembcorp Salalah has developed, owns, and operates the independent water and power plant. Its facilities include gas-fired and renewable energy assets, contributing to more than one gigawatt of installed capacity across Oman. By securing this power agreement, Sembcorp positions itself to advance long-term growth plans in the region. Moreover, the company strengthens its role in Oman’s energy and water sectors while supporting national development goals.
The 10-year contract provides stability for investors and ensures continuous service to Oman’s electricity and water markets. In addition, the agreement demonstrates confidence in Sembcorp’s operational capabilities and its expertise in energy and urban solutions. Through this collaboration, the company can optimize plant performance and maintain a reliable supply to the sultanate.
Shares of Sembcorp experienced modest gains following the announcement. This reflects investor confidence in the company’s strategic positioning in Oman’s energy sector. Furthermore, the long-term contract supports predictable cash flows and reinforces the company’s growth trajectory. By combining proven operational experience with strong local partnerships, Sembcorp can expand its influence in the Gulf energy market.
As Oman continues to develop its energy and water infrastructure, Sembcorp’s power agreement ensures a sustained contribution to the sultanate’s industrial and public needs. The deal strengthens the company’s portfolio, secures future revenue, and underlines its commitment to sustainable operations. Furthermore, Sembcorp’s long-term strategy focuses on delivering value for both stakeholders and local communities.
