Sembcorp Salalah Power and Water Company

What Sembcorp Salalah Power and Water Company does

Sembcorp Salalah Power and Water Company SAOG is an Oman-based publicly listed (MSX: SSPW) Independent Water and Power Producer (IWPP) that developed, financed, built, owns, and operates the Salalah Independent Water and Power Plant in the Dhofar Governorate of southern Oman. The company was founded in 2007, achieved full commercial operation of its integrated facility in May 2012, and listed on the Muscat Securities Market in October 2013. Sembcorp Utilities (Singapore), a wholly-owned subsidiary of Sembcorp Industries, holds 40% of the company; Oman Investment Corporation holds 13%; and public shareholders hold the remaining 47%.

The company's core asset is a single integrated facility combining a gas-fired combined cycle power plant and a seawater desalination plant. The power facility comprises five gas turbine units, five heat recovery steam generators, and two steam turbines configured for combined cycle operation, delivering 489 MW of net capacity (445 MW contracted). The water facility uses dual media filtration, two-pass reverse osmosis, and post-treatment remineralisation to produce 15 million imperial gallons (69,000 cubic metres) of potable water per day. The total development cost was approximately US$1 billion, financed through a March 2010 project-financing package that notably marked the first Chinese lending to a Gulf IWPP. The facility supplies approximately 72% of power dispatch and 100% of net installed desalinated water capacity in the Dhofar Governorate.

Revenue is generated under a 15-year Power and Water Purchase Agreement (PWPA) with Oman Power and Water Procurement Company (OPWP), a wholly-owned subsidiary of the Government of Oman, under a take-or-pay structure in which approximately 90% of revenue derives from capacity charges payable for 100% of available capacity regardless of dispatch. Fuel costs are passed through to OPWP under a co-terminus Natural Gas Sales Agreement with the Ministry of Oil and Gas. Operations and maintenance are handled by Sembcorp Salalah O&M Services Company, a 70/30 joint venture between Sembcorp Utilities and Oman Investment Corporation. The original PWPA expired on April 3, 2027; a new 15-year agreement was announced on September 30, 2025, extending operations into the 2040s.

Name

Sembcorp Salalah Power and Water Company

Legal name

Sembcorp Salalah Power and Water Company SAOG

Website

https://sembcorpsalalah.com.om

Company type

Public

Founded year

2012

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Sembcorp Salalah Power and Water Company is an Oman-listed IWPP that operates the Salalah Independent Water and Power Plant, supplying 72% of regional power and 100% of desalinated water to the Dhofar Governorate under a 15-year take-or-pay PWPA with the Government of Oman.

Ownership category

akta.pro rank

Product category

Independent Power and Water Production

NAICS

Water Supply and Irrigation Systems (221310), Electric Power Generation (22111)

SIC

Water Supply (4941)

akta.pro primary industry

Seawater Reverse Osmosis (SWRO) Plants & Operations (EUANAFAA)

Keywords

• Independent power production
• Seawater desalination
• Combined cycle power
• Power and water utilities
• IWPP operations

Headquarters

HQ city

Salalah

HQ country

Oman

HQ region

Middle East

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Supply Chain, Personnel, Technology or R&D

Revenue model

1. Capacity Charges (PWPA): The company generates approximately 90% of total revenue from capacity charges paid by Oman Power and Water Procurement Company (OPWP) under a 15-year take-or-pay power and water purchase agreement. These charges are payable regardless of actual output dispatched, providing strong predictability of stable cash flows based on availability of power and water capacity.
2. Fuel Cost Pass-Through: The fuel charge element of the PWPA allows full pass-through of natural gas costs to OPWP to the extent that electricity is generated within contracted plant efficiency parameters. Natural gas is purchased from Ministry of Oil and Gas under a take-and-pay arrangement.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

Sembcorp Salalah Power and Water Company operates the Salalah Independent Water and Power Plant in Oman, an integrated gas-fired combined cycle power facility (489 MW net capacity, 445 MW contracted) and seawater desalination plant (15 million imperial gallons per day / 69,000 cubic metres per day). The company supplies electricity and potable water to the Dhofar Governorate under a 15-year take-or-pay Power and Water Purchase Agreement with the Government of Oman, represented by Oman Power and Water Procurement Company (OPWP).

Product overview

Sembcorp Salalah Power and Water Company operates a single integrated facility - the Salalah Independent Water and Power Plant in Oman. The plant consists of two core products: a gas-fired combined cycle power facility (with 5 gas turbines, 5 heat recovery steam generators, and 2 steam turbines producing 489 MW net power capacity) and a seawater desalination facility (using dual media filtration, two-pass reverse osmosis, and remineralisation to produce 15 million imperial gallons of potable water per day). These products work together to supply power and water under a 15-year power and water purchase agreement to the Oman Power and Water Procurement Company.

Differentiator

Problem solved

Functional benefit

Products and services

• Salalah Independent Water and Power Plant An integrated gas-fired combined cycle power generation and seawater desalination plant in the Dhofar Governorate of Oman, supplying electricity and potable water to the Government of Oman under a 15-year take-or-pay Power and Water Purchase Agreement with Oman Power and Water Procurement Company (OPWP). The plant has a net power capacity of 489 MW (445 MW contracted) and water capacity of 15 million imperial gallons (69,000 cubic metres) per day.
• Gas-Fired Combined Cycle Power Facility Power facility integrating five gas turbines with five heat recovery steam generators and two steam turbines in a combined cycle configuration, achieving optimal energy production efficiency and delivering 489 MW net power capacity (445 MW contracted) to the Dhofar grid.
• Seawater Desalination Facility Seawater desalination facility combining three treatment processes (dual media filtration, two-pass reverse osmosis, and post-treatment remineralisation) to produce high-quality potable water at 15 million imperial gallons (69,000 cubic metres) per day for the Dhofar region.

Quantifiable outcome

• 100% of desalinated water capacity and 72% of power dispatch in Dhofar Governorate
• +1 more outcomes

Named customers1 record

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Six partnerships are on record, tiered core and minor.

• Oman Power and Water Procurement Company (OPWP)coreStrategic or Co-development PartnerWholly-owned subsidiary of the Government of Oman and sole off-taker for power and water. PWPA signed for 15 years ending April 3, 2027. Company receives capacity charges for 100% of available power and water capacity under take-or-pay arrangement.
• Ministry of Oil and Gas (MOG)coreStrategic or Co-development PartnerNatural gas supplier under a 15-year take-and-pay Natural Gas Sales Agreement co-terminus with PWPA. Gas supplied at pre-determined price with full pass-through to OPWP.
• Ministry of Housing (Oman)minorStrategic or Co-development PartnerGrants usufruct rights over the project site for 25 years at annual consideration of OMR 1,000. Agreement may be renewed for another 25-year term.
• Sembcorp Salalah O&M Services CompanycoreImplementation/ SI/ Consulting PartnerJoint venture company (70% owned by Sembcorp Utilities, 30% by OIC) responsible for operations and maintenance of the Salalah Independent Water and Power Plant for 15 years under OMA. Also manages CSA with General Electric for gas turbine maintenance.
• Dhofar Power CompanyminorStrategic or Co-development PartnerGovernment subsidiary serving as grid operator. Electrical Connection Agreement (ECA) entered for 25-year initial term setting out contractual and operating framework for grid connection.
• Office of the Minister of State and Governor of DhofarminorStrategic or Co-development PartnerGovernment body for Water Connection Agreement (WCA) governing connection to the Water Transmission System. WCA has 25-year initial term.

Scale indicators5 records

Recent moves9 records

Expansion highlights3 records

Direct peers

• ACWA Power: The largest private-sector power and water desalination developer in the Middle East, operating multiple IWPPs under long-term take-or-pay agreements with single government off-takers. Closest direct comparable in business model, contract structure, and Gulf footprint.
• Qatar Electricity and Water Company (QEWC): Qatar's primary integrated power and water producer operating generation and desalination assets under similar long-term government off-take arrangements. Comparable in dual power/water business model and regulated utility economics.
• Musandam Power Company: Omani IWPP operating a similar gas-fired power and desalination facility under a PWPA with OPWP. Closest in-country structural comparable given identical off-taker framework and contract economics.
• Al Kamil Power Company: Omani IWPP that developed, owns, and operates the Al Kamil power and desalination plant under a long-term PWPA with OPWP. Direct structural peer with identical regulatory and off-take framework.

Broad incumbents

• Saudi Electricity Company (SEC): Vertically integrated national utility responsible for generation, transmission, and distribution across Saudi Arabia. Overlaps in power generation but operates across the full electricity value chain rather than as a single-asset IWPP.
• Abu Dhabi National Energy Company (TAQA): Diversified Gulf-headquartered utility with generation, water desalination, and transmission assets across MENA. Comparable in water/power integration but operates as a much larger multi-asset platform rather than a single IWPP.

Regional players

• Emirates Water and Electricity Company (EWEC): Abu Dhabi's off-taker and water/electricity planner analogous to OPWP. Relevant counterpart rather than direct competitor, but indicative of the regulated Gulf procurement model under which SSPWC operates.
• Dhofar Power Company: Omani government subsidiary operating as the regional grid operator in Dhofar and counterparty to SSPWC's Electrical Connection Agreement. Adjacent infrastructure role enabling SSPWC's power dispatch.

Others

• Sembcorp Industries: Singapore-listed parent holding 40% of SSPWC through Sembcorp Utilities. Operates a 35.2GW balanced energy portfolio across 12 countries and is the strategic anchor of SSPWC's operations and capital allocation.
• Nama Power and Water Procurement: Oman's renamed successor to OPWP as the off-taker for power and water under national PWPAs. Counterparty rather than peer, but central to SSPWC's revenue framework and tariff negotiations.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sembcorp Salalah Power and Water Company