Sembcorp subsidiary clinches 10-year power and water agreement with Omani company
The new contract strengthens long-term revenue visibility and supports operational sustainability, says Sembcorp
[SINGAPORE] A subsidiary of Sembcorp Industries has won a 10-year power and water purchase agreement from Nama Power and Water Procurement (Nama PWP), the single procurer of power and water capacity in Oman.
The new agreement was secured by the company’s unit in Oman, Sembcorp Salalah Power & Water Company, said Sembcorp Industries on Tuesday (Sep 30).
It will commence on Apr 4, 2027, immediately after the current 15-year power and water purchase agreement expires on Apr 3, 2027.
Sembcorp Salalah developed, owns and operates the Salalah Independent Water and Power Plant, an electricity-generation and seawater-desalination plant located in the Gulf state.
Under the new deal, the plant will have a contracted capacity of 465 megawatts of power per hour and 68,190 cubic metres of water a day.
Sembcorp said that the new contract ensures “continued off-take under mutually agreed commercial terms and reinforces the strategic partnership between Sembcorp Salalah and Nama PWP”.
The agreement also strengthens long-term revenue visibility and supports operational sustainability, added the energy and urban solutions provider.
Sembcorp said that it is well-positioned to advance its long-term growth plans in Oman, given its portfolio of more than one gigawatt of energy assets – comprising gas and renewables – in the sultanate.
Shares of Sembcorp ended Monday 0.2 per cent or S$0.01 higher at S$6.02.
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