Sembcorp just placed its first wind bet in the Middle East, and Oman is the host.
Singapore based Sembcorp Industries has lifted its Oman energy portfolio to 1.1 gigawatts, including the 125 megawatt Dhofar II Wind Project. Developed in partnership with OQ Alternative Energy, the wind farm carries a 20 year power purchase agreement with Nama PWP and is slated for commercial operation in the third quarter of 2027. Sembcorp also locked in a 10 year power and water purchase agreement for the 465 megawatt Salalah Independent Water and Power Plant, plus a stake in the 588 megawatt peak Manah II Solar IPP built with China’s Jinko Power. Globally, the Singaporean utility now operates 28.5 gigawatts of energy assets, with 20.4 gigawatts already in renewables.
What to look for
The most interesting detail here is the geography of the capital stack. Sembcorp is Singaporean, OQ is Omani, Manah II’s solar partner is Chinese, and the Salalah extension keeps gas firmly in the mix. We read that blend as a sign that Oman is a confidence market for investors who price risk carefully. Keep an eye on whether Dhofar II delivers in Q3 2027; I think on time execution would put Oman near the top of MENA for converting wind awards into operating projects. Watch too for how Sembcorp’s wind returns compare with its solar and gas margins; I suspect that benchmark will shape how quickly other Asian utilities follow.
What it means for MENA
A Singaporean state owned utility with 28.5 GW of operating assets has now taken a Middle East wind mandate. My read is that this broadens MENA wind’s financing base beyond the developers the region already knows, and that other Asian utilities will watch how Dhofar II performs.
Nama PWP is the sole national offtaker of power and water in Oman, and both Dhofar II and the Salalah renewal run through it. I would watch its next wind award closely.
