SEOUL — Korea Electric Power Corporation (KEPCO) has successfully secured a major contract for the Phase 2 Jafurah cogeneration power plant project in Saudi Arabia, valued at approximately 2.1 trillion won ($1.4 billion). Building on the success of the first phase, KEPCO’s consecutive sole victory further solidifies its dominant presence in the Middle Eastern power market and is expected to drive 1.2 trillion won in collaborative exports for South Korean companies.

KEPCO announced on Wednesday, June 3, that it has signed a Power and Steam Purchase Agreement (PPA) with Saudi Arabia’s state-owned oil giant, Aramco. Concurrently, KEPCO finalized the engineering, procurement, and construction (EPC) contract with Doosan Enerbility for the plant’s development.

The mega-project involves constructing a cogeneration plant capable of generating 331 megawatts (MW) of electricity and 465 tons of steam per hour. Located at the Jafurah gas field, the facility is scheduled for completion by June 2029, after which it will reliably supply power and steam to Aramco for the next 17 years.

This project stands as a textbook example of the "Team Korea" synergy. A Special Purpose Vehicle (SPV) jointly established by KEPCO and Aramco will oversee operations. Doosan Enerbility will handle the construction, while the Export-Import Bank of Korea (KEXIM) provides financial backing, and KEPCO manages long-term operations. This collaborative framework is projected to generate over 1.2 trillion won in export ripple effects for domestic equipment suppliers and sub-contractors.

"Winning the Jafurah Phase 2 project demonstrates international recognition of KEPCO's top-tier technology and project execution capabilities," a KEPCO representative stated. "This achievement is particularly meaningful as it showcases the collective strength of Korean construction, finance, and operations on the global stage."

Since entering the Saudi power sector with the Rabigh heavy oil-fired power project (1,200MW) in 2009, KEPCO has aggressively expanded its footprint. Its portfolio now includes Jafurah Phase 1, the Sadawi solar project (2,000MW), the Ruma 1 and Nairiya 1 gas-fired combined-cycle projects (3,780MW), and the Dawadmi wind project (1,500MW).

With this latest momentum, KEPCO plans to accelerate its expansion across the Middle East. The state utility is currently channeling its resources into securing upcoming tenders from Aramco for subsequent cogeneration projects scheduled for the second half of this year. Moving forward, KEPCO aims to diversify its regional portfolio across gas-fired power, renewable energy, grid infrastructure, and Energy Storage Systems (ESS).