ENGIE (electric utility company) has signed new Power Purchase Agreements (PPA)for its Barka 3 and Sohar 2 independent power plants in Oman, extending both assets for an additional 15 years beginning 1 April 2028.

The agreements, concluded with Nama Power and Water Procurement Company (Buyer of power and water), mark the longest PPA extension achieved to date in Oman and bring to a close the company's current cycle of legacy asset renewals in the Sultanate.

Longest Extension Yet Closes Out Renewal Program

The 15-year terms secured for Barka 3 and Sohar 2 represent the most significant extension ENGIE has achieved in Oman to date. With the new agreements in place, the company has now completed extensions across all of its key assets in the country.

Previous renewals covered Barka 2 for nine years, Sohar 1 for nine years, and Rusail for six years. The conclusion of these negotiations signals the end of a structured renewal program through which ENGIE has progressively locked in its operational footprint across Oman's power sector.

Both plants are combined cycle gas turbine facilities, each with a generation capacity of approximately 744 megawatts. Barka 3 and Sohar 2 were commissioned in 2013 and have since operated as significant contributors to Oman's electricity supply, providing what the company describes as reliable and flexible generation to support grid stability.

Role of Gas-Fired Generation in Oman's Evolving Energy Mix

ENGIE has framed the extension of the two gas-fired plants within the broader context of energy transition dynamics across the region. The company notes that flexible gas-fired generation continues to play an important role in electricity systems that are integrating increasing volumes of renewable energy.

Barka 3 and Sohar 2 provide dispatchable capacity, meaning they can be called upon to generate electricity as needed, which ENGIE says complements the intermittent nature of renewable sources such as solar and wind.

This characteristic is particularly relevant for Oman, which has been advancing its renewable energy ambitions as part of broader efforts to diversify its energy mix.

Gas plants capable of flexible operation are increasingly valued in such transitions for their ability to maintain grid reliability when renewable output fluctuates. ENGIE's framing of the two CCGT assets in this light positions their continued operation not as a barrier to decarbonization but as a support mechanism for its management.

Executive Statement Underscores Strategic Commitment

Niko Cornelis, GCC Country Manager at ENGIE, commented on the significance of the agreements for the company's position in Oman. He described the Sultanate as a key market for ENGIE in the Middle East and said the company's continued presence through Barka 3 and Sohar 2 reflects its role in supporting reliable and efficient power infrastructure in the country.

Cornelis noted that the two plants provide flexible generation capacity that plays an important role in maintaining grid stability and meeting evolving electricity demand.

He characterized the new agreements as an expression of ENGIE's long-standing presence in Oman and its ongoing commitment to supporting the country's changing energy mix.

Agreements Secured with Nama Power and Water Procurement Company

The PPAs were signed with Nama Power and Water Procurement Company, referred to as PWP, which is the entity responsible for procuring power and water capacity in Oman.

The involvement of PWP as the counterparty reflects the structured nature of Oman's electricity market, in which independent power plants operate under long-term contractual arrangements with a designated government procurement body.

The new agreements will take effect from 1 April 2028, at which point the extended terms for both Barka 3 and Sohar 2 will begin running. The plants will continue to operate under their existing arrangements until that date, ensuring continuity of supply from both assets.

Consolidating a Long-Term Position in the Sultanate

The completion of the renewal cycle positions ENGIE as a deeply embedded participant in Oman's power infrastructure over the coming decades. With extensions now secured for Barka 2, Sohar 1, Rusail, Barka 3, and Sohar 2, the company has established a multi-asset presence that spans a significant portion of the country's thermal generation fleet.

ENGIE's activity in Oman forms part of its broader Middle East operations. The company provides a range of energy solutions across the region, including renewable energy, desalination, district cooling, and local energy infrastructure, in addition to the flexible gas generation assets that have long formed the core of its Omani portfolio.

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