Egypt’s Orascom Construction has teamed up with Spain’s Técnicas Reunidas to build a 3-GW combined-cycle natural gas power plant in Saudi Arabia. The two companies announced on March 24 that they had secured a $2.6 billion contract for the Qurayyah IPP Expansion Project in the Eastern Province of Saudi Arabia.
The contract, which involves engineering, procurement, and construction (EPC), 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 incorporate carbon capture technology and will include the construction of a 380-kW substation.
In February, Saudi Electricity Co. revealed that it had signed a power purchase agreement with the Saudi Power Procurement Co. for the electricity generated by the expansion project.
The new plant will boost electricity supply in an area that includes the original Qurayyah IPP, a 4-GW gas-fired power plant that has been in operation since 2015.
Osama Bishai, CEO of Orascom Construction, emphasized the company’s strategy of expanding into key sectors such as power and water. He expressed confidence that the project would deliver high-quality results in Saudi Arabia, building on Orascom’s recent successes in Egypt. Bishai also highlighted the company’s partnership with Técnicas Reunidas on the large-scale project.
Saudi Arabia’s Growing Gas-Fired Power Capacity
The Qurayyah expansion is part of Saudi Arabia’s broader efforts to increase its natural gas-powered electricity generation, supported by state-owned oil giant Aramco’s ramped-up production. International energy companies and engineering firms are heavily involved in these initiatives.
In March, Siemens Energy was awarded a $1.6 billion contract, with Harbin Electric International serving as the EPC contractor. The deal involves supplying technologies for two new gas-fired plants—Rumah 2 and Nairyah 2—located in the western and central parts of Saudi Arabia. These plants will add 3.6 GW of power generation capacity to the national grid. The two plants will initially run in simple-cycle mode, transitioning to full combined-cycle operation by 2028.
Orascom’s Expanding Global Presence
Orascom Construction PLC is a major player in global engineering and construction, with a strong presence in the Middle East, Africa, and the U.S. The company works across the infrastructure, industrial, and commercial sectors, with a portfolio that includes projects with more than 30 GW of total power generation capacity in the Middle East and Africa, including two 4.8-GW combined-cycle gas-fired plants in Egypt.
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