Siemens Energy tapped for USD 1.6 bn projects: Germany’s Siemens Energy bagged a USD 1.6 bn contract to provide key tech to the Rumah 2 and Nairyah 2 gas-fired power plants, according to a press release (pdf) from Siemens. China’s Harbin Electric International is the main EPC contractor.
The details: The company will manufacture six gas turbine, four steam turbines, and ten generators, along with other components at its Energy Dammam Hub, which is currently expanding. Siemens will also handle long-term maintenance for 25 years in collaboration with Harbin.
About the plants: The two plants will provide a capacity of 1.8 GW each to the national grid, enough to power around 1.5 mn homes and offset 60% of emissions compared to traditional oil-fired stations, the statement said. Simple cycle operations are set to begin in 2027, with full operations slated for 2028.
SOUND SMART- The projects will incorporate high-efficiency gas turbines in combined-cycle mode, which allow for the use of carbon capture technologies. They are expected to contribute to the government’s energy mix strategy engineered to meet growing demand and diversify energy sources. The Kingdom aims to generate 50% of its electricity needs from natural gas by 2030, with the other half coming from renewables.
Sounds familiar? In November, Abu Dhabi’s National Energy Company (Taqa), Japan’s Jera, and Saudi’s Al Bawan were awarded contracts on a build, own, and operate basis for the two plants, with Taqa acting as the managing and technical lead, and Jera serving as a technical member.
REMEMBER- Siemens is active in the Kingdom: The Saudi Electricity Company signed an agreement with Siemens Energy in October on high-voltage gas-insulated switchgears, as well as seven more agreements for the localization of component production. Siemens also partnered with Egypt’s Elsewedy Electric to develop a USD 800 mn power plant in Rabigh, set to be fully completed by the end of 2026.