Oman's Nama Power & Water Procurement Company (Nama PWP) has invited interested firms to submit their prequalification applications for a competitive tender to develop a gas-fired independent power producer (IPP) project in the sultanate.

The Misfah and Duqm combined-cycle gas turbine plants will have a capacity of 2,400MW and will be tendered as one contract, according to a source close to the project.

Nama PWP expects firms to submit their statements of qualifications by 13 March.

In December, the project client invited companies to express interest in the project, which will be implemented on a build, own and operate (BOO) basis.

At the time, Nama PWP said it expected to issue the tender in the first quarter of 2025 and award the BOO contract by Q4.

The company also said it expects early power in Q2 2028, with full commercial operation set for Q2 2029.

US/India-based Synergy Consulting is the client's financial adviser.

The new project represents a u-turn on a previous announcement that Oman would not build any new gas-fired power generation plants, which local media reported in 2022.

A local media report at the time, citing the chairman of the Authority for Public Services Regulation, Mansoor Al-Hinai, stated that "a decision has been taken that meeting any growth in electricity demand in the future is from renewable sources only".

It was understood that Oman would not float any tenders other than those for solar or wind power generation plants "at this time".

IWPP/IPP extensions

In May last year, Nama PWP announced the award of renewed contracts for four gas-fired independent power and water projects (IWPPs) in the sultanate.

The agreements collectively secured over 1,500MW of electricity and 200,000 cubic metres a day of desalinated water for up to nine years.