Orascom Construction + Spanish partner to build USD 2.6 bn Saudi power plant

Orascom Construction + Spain’s Tecnicas to build USD 2.6 bn Saudi power plant: A 50-50 JV between Orascom Construction and Spain-based general contractor Tecnicas Reunidas inked a contract to build a USD 2.6 bn, 3 GW expansion of the Qurayyah IPP combined cycle power plant in Saudi Arabia’s Eastern Province, according to a statement (pdf). The engineering, procurement, and construction (EPC) contract was awarded by Hajr Two Electricity Company — a consortium of Saudi renewables giant Acwa Power, Saudi Electricity Company (SEC), and Haji Abdullah Alireza & Co (HAAISCO).

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

ICYMI- We first heard of the Qurayyah IPP expansion project last month, when SEC and Acwa Power signed a SAR 13.4 bn power purchase agreement with the Saudi Power Procurement Company for the project. SEC and Acwa Power each hold a 40% stake in the project, while HAAISCO owns the remaining 20%.

More on the facility: The 3 GW combined-cycle gas-fired power plant will be equipped with carbon capture technology and a 380 kV electrical substation.

Where things stand: The JV has received a limited notice to proceed, allowing it to begin preliminary work on the project before the full notice is issued.

BACKGROUND- The existing USD 668.3 mn Qurayyah IPP (pdf) — touted as the world’s largest combined-cycle gas-fired power plant — has a net generation capacity of 3.9 GW. The project began commercial operations back in 2015.

OC is a significant player in the region’s energy sector: Orascom Construction’s energy projects across the Middle East and Africa have a combined capacity of over 30 GW. These include two combined cycle gas-fired power plants in Egypt, each with a capacity of 4.8 GW, built in collaboration with Siemens.