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).

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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.

The international press also picked up the story: Reuters.

Editor’s note: This story was amended on 25 March, 2025 to note that Orascom Construction built two 4.8 GW power plants in Egypt in collaboration with Siemens rather than three plants in collaboration with Siemens and Elsewedy Electric.