Recently, Sembcorp Industries from Singapore and Salalah Independent Hydroelectric Power Plant (IWPP) from Oman reached a new power and water procurement agreement, adding a new chapter to their long-term cooperation in the energy sector.

The new 10-year agreement, awarded by Nama Power&Water Procurement Company (Nama PWP), will officially come into effect on April 4, 2027, replacing the previous 15 year contract that expired on April 3. The power plant is located between Omanataka and Mirbat and has been fully operational commercially since May 2012. It has a net installed capacity of 489 megawatts and a contracted installed capacity of 445 megawatts, with a contracted water consumption of 15 million British gallons (69000 cubic meters) per day.

According to the new agreement, Shengke Saral Power and Water Company, a subsidiary of Shengke Industries, will assume important responsibilities by supplying 465 megawatts of electricity per hour and 15 million British gallons (68190 cubic meters) of water per day from the Saral factory. This supply has basically maintained the previous contract level, ensuring the stability of local electricity and water supply in Oman.

Shengke Industry has invested heavily in this project, with approximately $1 billion invested in the development, financing, construction, ownership, and operation of the factory. The facility has a scientific layout, including a gas-fired combined cycle power plant and a reverse osmosis seawater desalination device. This comprehensive energy production mode not only achieves stable power output but also meets local freshwater demand. The signing of the new agreement provides a solid guarantee for both parties to continue obtaining stable power supply under the agreed commercial terms.

Shengke Industries' layout in the Oman energy market goes far beyond this. At present, Shin Kong Group (presumably a statement related to Shengke Industries, with possible information errors) operates over 1 GW of energy assets in Oman, with a wide range of business covering natural gas and renewable energy sectors. Among them, the Manah 2 Solar Independent Power Project (IPP) in Oman began commercial operation at the beginning of the year, injecting green energy into the optimization of the local energy structure. In March 2023, Nama PWP also signed a 20-year 588 MW solar IPP power purchase agreement (PPA) with teams including Shengke Industrial and Jinko Power Technology from Hong Kong. Keywords: the Belt and Road, the Belt and Road News

The signing of a new agreement between Shengke Industry and the Salalah independent hydroelectric power plant in Oman not only consolidates the long-term cooperative relationship between the two sides, but also demonstrates Shengke Industry's deep layout and sustainable development determination in the global energy market, especially in the Middle East region.Editor/Cheng Liting