Orascom JV to build USD 2.6 bn power plant expansion in Saudi Arabia

Orascom Construction + Tecnicas to build 3 GW IPP expansion in Saudi: The 50/50 JV between Nasdaq Dubai-listed global engineering firm Orscom Construction and Spain-based general contractor Tecnicas Reunidas inked a contract for the USD 2.6 bn, 3 GW expansion of the the Qurayyah IPP combined cycle power plant in Saudi Arabia’s Eastern Province, according to a press release (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).

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.

Who else is involved? Saudi Electricity Company (SEC) and Acwa Power signed a 25-year SAR 13.4 bn power purchase agreement with the Saudi Power Procurement Company last month. SEC and Acwa Power each hold a 40% stake in the project, while Hajj Abdullah Alireza & Company (Haaisco) owns the remaining 20%.

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

Orascom’s not new to the sector: Orascom has invested heavily in the regional power sector, including in two 4.8 GW CCGTs in Egypt, the press release added.