RIYADH, Saudi Arabia – Orascom Construction, an Egypt-based engineering and construction giant, has joined forces with Spain's Técnicas Reunidas to undertake a significant power infrastructure project in Saudi Arabia. The joint venture has secured a $2.6 billion contract to build a 3-gigawatt (GW) combined-cycle natural gas-fired power plant, the Qurayyah IPP Expansion Project, located in the Eastern Province.
The engineering, procurement, and construction (EPC) contract was awarded by Hajr Two Electricity Co., a consortium comprising ACWA Power, Saudi Electricity Co., and Haji Abdullah Alireza & Co. Ltd. The new facility will feature advanced carbon capture technology and include the construction of a 380-kilovolt (kV) substation. This development comes after Saudi Electricity Co. announced in February its power purchase agreement with Saudi Power Procurement Co. for the energy generated by the expansion.
The Qurayyah IPP Expansion Project will bolster the region's power supply, complementing the existing nearly 4-GW Qurayyah IPP power station, which has been operational since 2015.
Osama Bishai, CEO of Orascom Construction, emphasized the project's alignment with the company's geographic diversification strategy, particularly in critical sectors like power and water. "This project exemplifies the type of opportunities that we actively pursue where we can leverage our expertise to deliver high-quality projects and maximum value," Bishai stated. "It also builds on our success in the power sector most recently in Egypt, and we look forward to making a similar significant impact in Saudi Arabia. We are also pleased to partner with Técnicas Reunidas on this large-scale project and to extend our partnership in Saudi Arabia and the region."
This project is part of Saudi Arabia's broader initiative to increase its natural gas-based power generation, driven by Aramco's expanding gas production. The nation is attracting significant investment from international energy and engineering firms.
In a related development, Siemens Energy recently secured a $1.6 billion contract, partnering with Harbin Electric International, to supply technology for the Rumah 2 and Nairyah 2 gas-fired power plants. These plants, located in the western and central regions of Saudi Arabia, will add 3.6 GW of power to the national grid. Initially, they will operate in simple-cycle mode, transitioning to combined-cycle operation by 2028.
Orascom Construction PLC, with a robust presence in the Middle East, Africa, and the U.S., boasts a portfolio of projects with a combined generation capacity exceeding 30 GW, including two 4.8-GW combined-cycle gas-fired plants in Egypt. This latest contract reinforces the company's position as a leading player in the global energy infrastructure sector.
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