Meed | Firms receive Qurayyah and Ghazlan notices to proceed

Firms receive Qurayyah and Ghazlan notices to proceed

26 September 2024

Saudi Electricity Company (SEC) is understood to have issued limited notices to proceed to engineering, procurement and construction (EPC) contractors for the expansion of major gas-fired power plants in Saudi Arabia.

The planned new power plants are to be built to complement the capacities of the following gas-fired plants, which are located in the kingdom's Eastern Province:

Qurayyah
Ghazlan 1
Ghazlan 2

A team comprising Egypt's Orascom Construction and Spain's Tecnicas Reunidas have received a limited notice to proceed for the contracts to build a 3,600MW power plant in Qurayyah and a second plant, the 2,900MW Ghazlan 2 project, sources familiar with the projects said.

In addition, the contract to build a new power plant next to Ghazlan 1, which will have a capacity of 2,400MW, is understood to have been awarded to Energy China.

MEED understands that the power plants will be developed on a turnkey EPC basis.

MEED reported in July that bilateral discussions to develop combined-cycle gas turbine (CCGT) electricity generation plants in Saudi Arabia are under way between SEC and the kingdom's principal buyer, Saudi Power Procurement Company.

According to an industry source, the discussions revolve around five potential CCGT power generation plants, each with a capacity of between 1,500MW and 2,000MW.

This development aligns with SEC's plan to develop approximately 30,000MW of gas-fired capacity within and outside Saudi Arabia, which MEED reported on 13 June.

According to industry sources, SEC has booked in advance 30GW of gas turbine capacity with the industry's leading original equipment manufacturers in anticipation of domestic and overseas demand for gas-fired generation power plants.

Experts also say that Saudi Arabia's liquid fuel displacement programme and the need to increase its electricity grid's flexibility to accommodate more renewable power underpin moves to expand the state utility's gas-fired capacity.

Saudi Arabia envisages that renewable energy sources will account for half of its installed electricity generation capacity by 2030.

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Jennifer Gnana