Construction has formally begun on an 890-megawatt (MW) combined cycle gas turbine (CCGT) independent power producer (IPP) project in Oman’s Duqm Special Economic Zone, Oman Observer reported on September 5, 2026. Project company Coastal Power SAOC marked the start of the engineering, procurement and construction (EPC) phase at the Special Economic Zone Authority at Duqm (SEZAD) site, with a completion target set for 2029.
Coastal Power SAOC is a consortium comprising Korea Western Power (KOWEPO), Qatar’s Nebras Energy, UAE-based Etihad Water and Electricity, and Oman’s Bahwan Infrastructure Services, according to the report. The buyer is Oman’s state power and water procurement company, Nama Power and Water Procurement Company (Nama PWP). Oman Observer reported that the EPC contract was awarded to PowerChina and Doosan Heavy Industries Muscat SPC. On the equipment side, Doosan Enerbility reportedly secured a steam turbine and generator supply contract in June 2026, valued at approximately KRW 350 billion (USD 350 million). WSP International is serving as project consultant, it is reported. The Duqm CCGT is said to have been designed with allowance for future integration of carbon capture and storage (CCS) facilities.
The Duqm IPP has a capacity of 890 MW, with net output at approximately 876 MW, according to the report. The combined investment program covering both the Duqm and Misfah CCGT projects is valued at approximately RO 1 billion (Omani Rial), it is reported. Nama PWP awarded the project in January 2026, and construction began roughly eight months later, on September 5, 2026, entering the EPC phase. The completion target is set for 2029.
Oman has continued to advance CCGT IPP projects to meet power demand from industrial and refining complexes centered on the Duqm Special Economic Zone, and this project is reported to be part of that continuing effort. The Duqm Special Economic Zone is being developed as a composite industrial hub encompassing refining, petrochemical, and shipbuilding facilities, and securing a stable power supply base is said to have been regarded as a prerequisite for the zone’s broader development. The inclusion of a CCS-ready design is seen as aligning with the broader low-carbon transition trend in Gulf power generation projects.
In the Middle East, CCGT IPP awards have continued in recent years, with multinational consortium structures and international EPC and equipment supplier participation becoming increasingly standardized. Consortium structures that bring together power developers and infrastructure investors from multiple countries, as seen in this Duqm project, are seen as spreading financing risk while linking equipment supply chains from participating countries to the project. The continued award of core equipment such as steam turbines and generators to Asian heavy industry manufacturers reflects a broader trend of expanding Asian supplier presence in the CCGT equipment supply chain. The CCS-ready design suggests that low-carbon design requirements could become a standard specification for future Gulf power projects. For EPC contractors and equipment suppliers, the roughly three-year construction window set for this project underscores schedule management as a key factor in future competitiveness. The roughly eight-month span between award and groundbreaking is also seen as illustrating that early-stage preparatory procedures for large IPP projects are proceeding relatively quickly.
Whether construction proceeds on schedule toward the 2029 completion target will be a key point to monitor. The detailed financing structure for the combined Duqm-Misfah investment program has yet to be finalized and warrants further confirmation. Whether and when carbon capture facilities will actually be integrated remains unconfirmed and requires further verification. Additional points of interest include whether further IPP tenders will follow in Oman, and whether the consortium members involved in this project secure subsequent contracts. Whether the Misfah CCGT project proceeds on a separate timeline from Duqm, or targets a similar completion date, is also a matter requiring further confirmation.