Egypt's Orascom Joins Spanish Group to Build 3-GW Gas-Fired Plant in Saudi Arabia

Yahoo

24-03-2025

An Egypt-based construction group is partnering with a Spanish energy infrastructure company to build a 3-GW combined-cycle natural gas-fired power plant in Saudi Arabia. Orascom Construction, headquartered in Cairo, on March 24 said its 50-50 joint venture with Spain's Técnicas Reunidas was awarded a $2.6-billion contract to build the Qurayyah IPP Expansion Project power station in the Eastern Province of Saudi Arabia. The engineering, procurement, and construction contract was signed with Hajr Two Electricity Co., a consortium that includes ACWA Power, Saudi Electricity Co., and Haji Abdullah Alireza & Co. Ltd. The power plant will have technology for carbon capture. The project also includes construction of a 380-kW substation. Saudi Electricity Co. in February said it had signed a power purchase agreement with the Saudi Power Procurement Co. for the energy from the expansion project. The new facility provides more electricity in a region that includes the original Qurayyah IPP power station, a nearly 4-GW gas-fired plant that has operated since 2015. Osama Bishai, CEO of Orascom Construction, said, "We continue to deliver on our geographic diversification strategy with a particular focus on key sectors such as 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. 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."
Qurayyah is among several projects being designed to increase Saudi Arabia's power generation from natural gas, as state-owned oil and gas company Aramco ramps up production. Those projects are being supported by international energy groups and engineering firms. Siemens Energy earlier in March was awarded a $1.6-billion project that has Harbin Electric International as the EPC contractor. That deal includes supplying technologies for the Rumah 2 and Nairyah 2 gas-fired power plants in Saudi Arabia. Those stations are located in the western and central regions of the country. Rumah 2 and Nairyah 2 will 3.6 GW of power generation capacity to the Saudi grid. The two plants initially will operate in simple-cycle mode, then transition to full operation as combined-cycle power plants by 2028. Orascom Construction PLC is a leading global engineering and construction contractor with a footprint covering the Middle East, Africa and the U.S., and operations encompassing the infrastructure, industrial, and commercial sectors. Orascom has projects either online or under construction in the Middle East and Africa with total generation capacity of more than 30 GW. That includes two 4.8-GW combined-cycle gas-fired facilities in Egypt. —Darrell Proctor is a senior editor for POWER.