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  Doosan Enerbility wins $611m Riyadh plant expansion deal

  14 March 2025

  South Korean contracting firm Doosan Enerbility has signed a contract with the Saudi Electricity Company for the construction of the Riyadh Power Plant 12 (PP12) combined-cycle gas turbine (CCGT) power plant in Saudi Arabia.

  Signing a company official, a local media report said the contract is valued at KD890bn ($611m).

  MEED exclusively reported in November last year that a team of Doosan Enerbiilty and China-headquartered Sepco 3 will undertake the expansion project for Riyadh Power Plant 12 (PP12).

  The greenfield CCGT power plant will have a generation capacity of 1,800MW.    

  MEED understands Doosan Enerbility will be responsible for the design, major equipment supply, and integrated commissioning of the PP12 expansion project.

  Located about 150 kilometres northwest of the capital Riyadh, the power plant is expected to be completed in 2028.

  Saudi Arabia is expanding two other thermal power plants in addition to PP12. Saudi utility developer and investor Acwa Power will develop the expansion projects for Hajr and Marjan, which have respective capacities of 3,600MW and 1,800MW.

  It is suggested, but not confirmed, that Sepco 3 will undertake the EPC contract for both schemes.

  Saudi Arabia is ramping up the development and construction of gas-fired power stations in line with its liquid-fuel displacement programme. 

  According to the Energy Institute, oil accounted for 152.1 terawatt-hours (TWh), or about 36%, of the total electricity generation in Saudi Arabia in 2023, which stood at 422.9TWh.

  Latest available data from MEED Projects and MEED suggests that generation and cogeneration plants powered by natural gas account for two-thirds, or 66.7%, of the 53GW total capacity under construction in the kingdom as of March.

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  Jennifer Aguinaldo
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  Doosan Enerbility confirms $1.5bn Saudi EPC deal

  14 March 2025

  South Korean firm Doosan Enerbility's share of the engineering, procurement and construction (EPC) contract for the Rumah 1 and Nairiyah 1 independent power projects (IPPs) in Saudi Arabia amounted to approximately KW2.2tn ($1.5bn).

  A local report on 13 March, citing Lee Hyun-ho, head of the company's plant EPC division, said Doosan Enerbility has secured a KW2.2tn contract to build two combined cycle power plants in Saudi Arabia.

  MEED exclusively reported in November last year that the South Korean contractor and China's Sepco 3 will undertake the EPC contract for the project. Tokyo-headquartered Mitsubishi Power will supply the gas turbines to power the plants.

  The share of Sepco 3 in the overall EPC contract has not yet been disclosed.

  The Rumah 1 and Nairiyah 1 IPPs will each have a capacity of 1,800MW and require a total combined investment of around SR15bn ($4bn).

  A consortium comprising Saudi Electricity Company (SEC), Riyadh-based utility developer Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contracts to develop the two CCGT IPPs in November.

  The consortium signed the power-purchase agreements (PPAs) for the two projects with the principal buyer, Saudi Power Procurement Company (SPPC), on 18 November in Riyadh. 

  The team offered a levelised electricity cost (LCOE) of $cents 4.5859 a kilowatt-hour (kWh) for Rumah 1 and $cents 4.6114/kWh for Nairiyah 1.

  The IPPs are expected to reach commercial operations in Q2 2008. 

  Rumah 1 is located in the Central Region in Riyadh and is part of the previously planned Riyadh Power Plant 15 (PP15). Nairiyah 1 is located in the Eastern Region.

  SPPC received bids for the contracts for four thermal IPPs – the other two being the similarly configured Rumah 2 and Nairiyah 2 – in August last year.

  SPPC previously indicated that the four power plants would operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.

  The four power generation facilities will be developed using a build-own-operate (BOO) model over 25 years. 

  SPPC’s transaction advisory team for the Rumah 1 and 2 and Al-Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

  Related read: Carbon capture for power plants remains vague

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  Jennifer Aguinaldo
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  Scatec and Egypt Aluminium seal $650m deal

  14 March 2025

  Oslo-headquartered renewable energy developer and investor Scatec has signed a 25-year US dollar-denominated corporate power-purchase agreement with Egypt Aluminium for a 1.1GW solar photovoltaic (PPV) plus 100MW/200MWh battery energy storage system (bess) plant project in Egypt.

  According to Scatec, the PPA is backed by a sovereign guarantee.

  The estimated total capital expenditure for the solar PV plus bess project is approximately $650m, which will be funded by approximately 80% non-recourse project debt,and the remainder, by equity from Scatec and partners.

  Scatec owns 100% of the project but is targeting to reduce its long-term economic interest by inviting additional equity partners, the firm said.

  Scatec will be the designated engineering, procurement and construction (EPC )service provider, with an EPC share of approximately 90% of total capex. It will also act as asset manager and operations and maintenance service provider for the project.

  It said the key next steps for the project are to work with the relevant authorities to allocate land, finalise grid connection and secure financing,

  Scatec said it aims to reach financial close and start construction within the next 12 months.

  Egypt Aluminium is the largest aluminium producer and industrial electricity consumer in Egypt and exports approximately 60% of its production to Europe.

  The solar PV plus bess project will be instrumental for Egypt Aluminium’s ambition to decarbonise its aluminium production and to meet the EU’s Carbon Border Adjustment Mechanism (CBAM) requirements which will be introduced in 2026, Scatec added.

  The project was first announced in January last year, when Egypt's Public Business Sector Ministry and Scatec were reported to be exploring the development of a solar power plant to supply clean energy for the operation of the Nagaa Hammadi aluminium complex in Egypt.

  The "groundbreaking" project is the first utility-scale PPA with an industrial offtaker in Egypt, said Scatec CEO Terje Pilskog.

  Growing projects pipeline

  It is the latest project in Egypt for Scatec, which withdrew in 2023 from two solar photovoltaic projects in Iraq and a green hydrogen project in Oman to focus its resources on developing projects in the North African territory.

  Scatec is the lead developer for the Egypt Green hydrogen project, which was first announced in 2021. Scatec, Abu Dhabi's Fertiglobe and the local Orascom Construction are developing the project in partnership with The Sovereign Fund of Egypt and the Egyptian Electricity Transmission Company.

  In July 2023, Scatec signed an agreement with Egypt's New & Renewable Energy Authority (NREA) to secure land for a planned 5,000MW wind farm in western Sohag.

  In September last year,  Scatec signed a US-dollar-denominated 25-year PPA with the Egyptian Electricity Transmission Company for a 1,000MW solar and 100MW/200MWh battery storage hybrid project in Egypt.

  Photo credit: Scatec

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  Jennifer Aguinaldo
• 
  JLL wins Pure Data Centres contract

  14 March 2025

  London-headquartered Pure Data Centres Group (Pure DC) has appointed Jones Lang LaSalle (JLL) to provide integrated facilities management services at its new Yas Island data centre in Abu Dhabi.

  The initial phase of Pure DC's first facility in the UAE went live in late February. When fully complete, the data centre campus will provide 45MW of capability, JLL said in a statement.

  JLL’s scope of work includes ongoing maintenance and support for the Yas Island data centre’s low-voltage and high-voltage electrical systems, including its uninterruptible power supplies, switchgear and hydrotreated vegetable oil (HVO)-powered generators, as well as its hybrid air and liquid cooling systems.

  Related read: Region poised for huge investment in data centres

  JLL will also be responsible for network and ICT management, alongside delivering front-of-house facilities management services, such as cleaning and landscaping.

  The firm said the new project will "reinforce its reputation as a leading consultant and operator across existing and new hyperscale data centre locations within the Europe, the Middle East and Africa (Emea) region".

  JLL recently added three senior executives in its Emea team after identifying a 742MW hyperscale construction boom in the region, the firm added.

  Saudi joint venture

  In November last year, Pure DC and the local  announced a joint venture to develop hyperscale data centres in Saudi Arabia.

  They said the joint venture plans to develop multiple 100MW-capacity data centre campuses in th kingdom to meet growing local and international customer demand.

  Founded in 2021 in London, Pure DC is majority-owned by funds of US-based Oaktree Capital Management, which have committed significant equity to fund the firm's global development pipeline.

  According to Pure DC's website, it has over 200MW of IT capacity live or under development in markets across Europe, Asia and the GCC.

  Aspiring AI hubs

  The UAE has the highest concentration of data centres, while Saudi Arabia is the fastest-growing regional market, with both countries, along with Qatar, aiming to be digital hubs and key players in AI.

  Globally, total investment in data centres reached $70.6bn in 2024 and is projected to grow by 5% to $74.3bn in 2025, according to GlobalData.

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  Jennifer Aguinaldo
• 
  Aramco to begin tendering for Sasref expansion in Q2

  14 March 2025

  

   

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  Saudi Aramco is expected to begin the solicitation of interest (SoI) round for the main tendering process for a major expansion project of its affiliate, Saudi Aramco Jubail Refinery Company (Sasref), in the second quarter of this year.

  The proposed project, which is part of Aramco’s $100bn liquids-to-chemicals programme, aims to convert the Sasref refining complex in Jubail Industrial City into an integrated refinery and petrochemicals complex by adding a mixed-feed cracker.

  The project also involves building an ethane cracker that will draw feedstock from the adjacent Sasref refinery.

  South Korean contractor Samsung E&A is performing pre-front-end engineering and design (pre-feed) and feed works on the project, based on a contract awarded by Aramco in March last year, according to sources.

  The duration of the pre-feed and feed contract is understood to be 18 months, sources told MEED, adding that Aramco could be preparing to start the SoI process for the main engineering, procurement and construction (EPC) tender in the second quarter.

  In November, Aramco signed a development framework agreement in Beijing with China-based Rongsheng Petrochemical Company for the Sasref integrated refining and petrochemicals complex project.

  “The agreement outlines the cooperation mechanism and planning relating to the design and development of the project, which aims to expand Sasref’s refining and petrochemical capabilities while fostering international collaboration,” Aramco and Rongsheng Petrochemical said in a joint statement at the time.

  Aramco, back in November, also confirmed that the project was in the pre-feed stage, adding that it envisaged that construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing Sasref complex would enhance its ability to meet growing demand for high-quality petrochemical products.

  The November agreement between Aramco and Rongsheng Petrochemical was the latest step in their joint investment in the Sasref petrochemical expansion project.

  The two companies first signed a cooperation framework agreement in April to explore the formation of a joint-venture entity to invest in the project.

  Rongsheng said it would potentially acquire a 50% stake in Sasref as part of that framework agreement. Aramco, in turn, would potentially seek to acquire a 50% stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Company (ZJPC), as well as participate in a planned expansion project of ZJPC in China.

  Aramco and Rongsheng then signed preliminary documents in September related to the joint venture and Sasref expansion project.

  ALSO READ: Regional downstream sector prepares for consolidation

  Aramco and UK energy major Shell were previously joint owners of the Sasref refinery.

  In April 2019, Aramco announced it had struck a deal with Shell to acquire the latter’s 50% share in the Sasref JV for $631m to take full ownership of the refinery complex. The Saudi energy giant has been the sole owner of the refinery since completing the transaction in September of that year.

  Aramco already owns a 10% interest in Rongsheng through its subsidiary Aramco Overseas Company, based in the Netherlands. Rongsheng owns a 100% equity interest in ZJPC, which operates an aromatics production complex and has an interest in a JV that produces purified terephthalic acid.

  Prior to signing the framework agreement with Rongsheng last April, Aramco signed a memorandum of understanding (MoU) with Hengli Group Company in April for the potential acquisition of a 10% stake in its subsidiary, Hengli Petrochemical, subject to due diligence and required regulatory clearances.

  Aramco also signed preliminary documentation with Hengli for the potential stake acquisition.

  Hengli Petrochemical owns and operates a 400,000 barrel-a-day refinery and integrated chemicals complex in China’s Liaoning province, as well as other plants and production facilities in Jiangsu and Guangdong provinces.

  Aramco has been supplying crude oil feedstock to Hengli Petrochemical since at least 2018.

  ALSO READ: Aramco and Chinese partners break ground on petrochemicals project

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  Indrajit Sen