Saudi Arabia plans two new gas-fired power plants

12 June 2024

 

Register for MEED's guest programme 

Saudi Power Procurement Company (SPPC) has invited companies to bid for the transaction advisory contracts for its next gas-fired independent power projects (IPPs).

According to an industry source, the Saudi principal buyer has received bids for the financial, legal and technical consultancy roles for the Al-Rais and Riyadh 16 IPPs.

The Al-Rais IPP will have a capacity of 2,400MW while the Riyadh 16 IPP has a planned capacity of 3,600MW.

Since 2022, SPPC has procured two batches of combined-cycle gas turbine (CCGT) schemes.

Qassim and Taiba IPPs

SPPC awarded contracts to develop the Qassim 1 and Taiba 1 and the Qassim 2 and Taiba 2 IPPs last year.

A consortium comprising Riyadh-based Saudi Electricity Company and Acwa Power signed the 25-year power-purchase agreements with SPPC to develop and operate the Qassim 1 and Taiba 1 IPPs on 13 November. Each plant has a capacity of 1,800MW. The two projects are valued at SR14.6bn ($3.9bn).

A team comprising the local Jomaih Energy & Water, France’s EDF and the local Buhur for Investment won the contract to develop the 1,800MW Qassim 2 and 1,800MW Taiba  2 IPP schemes.

Each project will be developed on a build-own-operate basis by the winning consortiums, which will be 100% owned by the successful bidders.

Remah and Nairiyah IPPs

Meanwhile, the final consortiums of bidders are being formed for the contracts to develop and operate the Remah 1 and 2 and Nairiyah 1 and 2 IPPs, as MEED previously reported.

Bids for the contracts are due on 30 June, although SPPC is understood to be reviewing whether an extension is necessary.

Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Nairiyah 1 and 2 will be in the Eastern Region. Each IPP will have a capacity of 1,800MW.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11905809/main.jpg
Jennifer Aguinaldo
Related Articles
  • Local contractor bids low for $629m Kuwait oil project

    20 November 2025

    Kuwait-based Mechanical Engineering & Contracting Company (MECC) has submitted the lowest bid on a contract to develop oil and gas facilities at the Sabriya and Bahra oil fields.

    The scope of the project is focused on developing a water separation facility next to Gathering Centre 23 (GC-23) and GC-24.

    It also includes developing an injection facility at GC-31.

    The full list of bidders for the project is:

    • Mechanical Engineering & Contracting Company (MECC) – KD193m ($629m)
    • Spetco – KD229m
    • Alghanim International – KD239m

    The tender was issued on 15 December 2024, with an initial bid submission deadline of 16 March 2025.

    The bid deadline was extended more than 10 times before prices were submitted.

    The client on the project is state-owned upstream operator Kuwait Oil Company (KOC).

    The scope of the project includes:

    • Installation of a high-integrity pressure protection system
    • Installation of chemical injection systems
    • Installation of effluent water transfer pumps
    • Installation of a low-pressure (LP) gas pipeline from the new LP gas knockout drum (KOD) to existing LP separator gas crude accumulator (inside GC-23 & 24)
    • Installation of interconnecting piping, instrumentation, electrical and civil works
    • Installation of a new oil recovery system with pumps, flowmeter and analyser
    • Installation of the substation and its equipment/systems
    • Installation of tie-ins for process and utilities from/to existing GC-30 to new injection facility
    • Installation of sludge collection, treatment and disposal system
    • Associated facilities

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, aims to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15120909/main.png
    Wil Crisp
  • Wood Group wins Iraq oil contract

    20 November 2025

    Aberdeen-based Wood Group has won a contract to deliver project management and engineering services for PetroChina at the West Qurna-1 oil field in southern Iraq, according to a statement from the company.

    Under the terms of the contract, Wood will manage engineering, procurement and construction (EPC) projects at the field. 

    Located approximately 50 kilometres northwest of Basra, West Qurna-1 holds more than 20 billion barrels of recoverable reserves.

    Ellis Renforth, Wood’s president of operations for the Europe, Africa and Middle East region, said: “This contract award deepens our decade-long partnership at West Qurna-1 and reflects the continued trust placed in Wood to deliver complex energy solutions in Iraq. 

    “We’re proud to combine our global expertise with a strong local workforce to help support Iraq’s energy ambitions.”

    The contract will be delivered by nearly 200 Wood employees based in Iraq and the UAE, the company said.

    On 17 November, in a vote, 88% of Wood Group’s shareholders backed the company’s takeover by Dubai-based Sidara.

    The vote came after months of delay, while Wood struggled to agree its accounts with its auditor.

    The company’s accounts were eventually published on 30 October, showing a pre-tax loss of more than £2bn and evidence that the auditor was still not satisfied with the figures going back several years.

    Wood Group accepted a $292m conditional takeover bid from Sidara in August.

    As of February, Wood Group employed 35,000 people across about 60 countries, many in consulting and engineering roles.

    In the Middle East, the company has project contracts in Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, where it has opened its third office in Sharjah.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15122155/main.png
    Wil Crisp
  • Local firm wins contract for Kuwait power project

    19 November 2025

    Local firm Alghanim International has won a contract to provide engineering services at the Subiya power and water distillation plant.

    Kuwait’s Central Agency for Public Tenders approved the award following a request from the Ministry of Electricity, Water & Renewable Energy.

    The contract, valued at $286m, covers engineering, supply, installation, operation and maintenance services to convert the 250MW second phase of the plant’s open-cycle gas turbines to combined-cycle gas turbines.

    The upgrade is intended to increase efficiency and provide additional generation capacity during periods of high demand.

    In July, MEED reported that Alghanim had submitted the lowest bid for the tender ahead of local firms Al-Daw Engineering General Trading & Contracting and Al-Zain United General Trading & Contracting.

    In 2024, US-based GE Vernova completed separate upgrades of four GE Vernova 9F.03 class gas turbines at the 2GW Sabiya combined-cycle power plant. Alghanim International acted as GE’s local engineering partner for that work.

    The Subiya power and water distillation plant is the largest power and water plant in Kuwait, with a power generation capacity of 7,046.7MW, accounting for 35% of the country’s installed capacity.

    It has a water desalination capacity of 100 million imperial gallons a day.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15116135/main.jpg
    Mark Dowdall
  • UKEF issues $3.5bn interest letter for Al-Maktoum airport

    19 November 2025

    Register for MEED’s 14-day trial access 

    The UK’s export credit agency UK Export Finance (UKEF) has issued a $3.5bn expression of interest letter to support the participation of UK businesses in the $35bn expansion of Al-Maktoum International airport, which is also known as Dubai World Central (DWC).

    Chris Bryant, UK minister for trade, handed the letter to Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai Aviation Engineering Projects (DAEP), and Paul Griffiths, CEO of Dubai Airports.

    Letters of interest from UKEF, although not binding commitments, help ensure that UK exporters are given every opportunity to bid for contracts on a project. This is typically achieved by providing financial solutions in exchange for an agreed level of UK content used on the project.  

    Previous letter

    It is not the first time UKEF has issued a letter of interest for the expansion of Al-Maktoum International airport. In 2014, it issued a $2bn letter of interest. In a statement at the time, UKEF said five prime UK-based contractors were being supported, along with UK suppliers across the supply chain.

    The five prime contractors were Carillion, Kier, Balfour Beatty, Laing O’Rourke and Interserve. Of those five companies, Carillion entered liquidation in 2018 and Interserve entered administration in 2019. Balfour Beatty sold its shareholding in Dubai-based Dutco Balfour Beatty in 2017.

    Although some progress was made on the project after the UKEF offer in 2014, the scheme stalled and was revived again in April 2024, when Dubai approved new designs for the airport.

    Project progress

    Since then, the project client, DAEP, has been awarding and tendering contracts for the first construction packages. It has awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works for the terminal building are being undertaken by Abu Dhabi-based Tristar E&C.

    DAEP is also close to formally awarding a contract for the substructure works for the West Terminal and Concourse One, Concourse Two and Concourse Three.

    Tendering is also ongoing for an automated people-mover (APM) system. The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.

    Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

    The airport’s construction is planned to be undertaken in three phases. Construction works on the project’s first phase are expected to be completed by 2032.

    The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.

    It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

    Dubai has said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.


    This aviation package also includes:

    > Middle East invests in giant airports
    > Broader region upgrades its airports
    > Global air travel shifts east

     

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115788/main.jpg
    Colin Foreman
  • Riyadh gives Expo infrastructure bidders more time

    19 November 2025

     

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, has extended the deadline for firms to submit commercial offers for the contract to undertake the initial infrastructure works at the site to 23 November.

    ERC had initially set deadlines of 26 October and 9 November for the submission of technical and commercial bids, respectively.

    The tender for the project’s initial infrastructure works was issued in September, as MEED reported.

    In October, MEED revealed that 16 firms had been invited to bid for the contract to undertake the initial infrastructure works at the Expo 2030 Riyadh site.

    The firms invited to bid include:

    • Shibh Al-Jazira Contracting (local)
    • Hassan Allam Construction (Egypt)
    • El-Seif Engineering Contracting (local)
    • Al-Ayuni Investment & Contracting (local)
    • Kolin Construction (Turkiye)
    • Al-Yamama Trading & Contracting Company (local)
    • Saudi Pan Kingdom (local)
    • Unimac (local)
    • Mapa Insaat (Turkiye)
    • Yuksel Insaat (Turkiye)
    • IC Ictas / Al-Rashid Trading & Contracting (Turkiye/local)
    • Mota-Engil / Albawani (Portugal/local)
    • Almabani / FCC Construction (local/Spain)

    The overall infrastructure works – covering the construction of the main utilities and civil works at Expo 2030 Riyadh – will be split into three packages:

    • Lot 1 covers the main utilities corridor
    • Lot 2 includes the northern cluster of the nature corridor
    • Lot 3 comprises the southern cluster of the nature corridor

    MEED previously reported that ERC was expected to issue the tender for some of the infrastructure packages in September.

    In July, US-based engineering firm Bechtel Corporation announced it had won the project management consultancy deal for the delivery of the Expo 2030 Riyadh masterplan construction works.

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is forecast to attract more than 40 million visitors.

    The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth vehicle, launched ERC in June as a wholly owned subsidiary to build and operate facilities for Expo 2030.

    In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115697/main.jpg
    Yasir Iqbal