meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Arabia to award 7.2GW Marjan, Hajr and PP12 contracts

8 November 2024

 

Saudi Power Procurement Company (SPPC) is expected to award the contracts to develop and build three greenfield thermal power plants with a total combined capacity of 7,200MW by the end of November.

The power plants will be sited at existing power complexes in Hajr, Marjan and Riyadh and will be separate from the ongoing independent power projects (IPPs) being publicly tendered. 

The expansion project for Riyadh Power Plant 12 (PP12) will have a generation capacity of 1,800MW.    

A project company formed by Saudi Electricity Company (SEC) will develop the project along with a team of China-headquartered Sepco 3 and South Korea’s Doosan Enerbility, which will undertake the project’s engineering, procurement and construction (EPC) contract, according to industry sources.   

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 also undertake the EPC contract for both schemes.

Saudi-listed Acwa Power has yet to confirm or announce the new projects. 

One of the sources said construction works on these expansion projects could begin by early 2025.

Original power plants 

Based on MEED archives, the local Saudi Arabian Bemco signed a SR4.7bn ($1.27bn) contract with SEC to build the original 2,175MW Riyadh PP12 plant in May 2012.

The US’ GE supplied eight gas turbines for Riyadh PP12, for which it signed an estimated $141m services and maintenance contract in 2017.

Acwa Power and its partners developed the original Hajr IPP, which became operational in 2015.

It has a capacity of 3,927MW. The 20-year build, own and operate contract is valued at  $2.7bn. South Korea’s Samsung C&T was the project’s EPC contractor.

Raft of gas-fired power plants

The three power plants bring the number of major gas-fired power generation facilities being built or about to begin construction in the kingdom to 15. They have a total combined capacity of roughly 30,500MW, excluding the cogeneration plants being developed for Saudi Aramco.

A team of Egypt’s Elsewedy Electric and Germany’s SIemens Energy is building a 1,200MW plant in Rabigh.

In September, MEED reported that SEC had issued limited notices to proceed to contractors for 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 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.

On 7 November, SPPC announced the winning bidders for the contracts to develop four CCGT plants in Riyadh and the Eastern Region.

A consortium comprising SEC, Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contract to develop and operate the Remah 1 and Nairiyah 1 IPPs, which each have a capacity of 1,800MW.

A second consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company successfully bid for the contract to develop and operate the similarly configured Remah 2 and Nairiyah 2 IPPs.

Construction work is under way for four IPPs that SPPC awarded last year. Taiba 1 and 2 and Qassim 1 and 2 will have a combined capacity of 7,200MW.

Experts say Saudi Arabia’s liquid fuel displacement programme and the need to increase the flexibility of its electricity grid to accommodate more renewable power underpin moves to expand the kingdom’s gas-fired capacity. 

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

SPPC previously indicated that the plants it has tendered and awarded will operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12871373/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Morocco plans second high-speed rail phase to Agadir

    26 October 2026

    Morocco has outlined a second rail investment cycle for 2030-35, which includes beginning construction of a high-speed rail extension from Marrakech to Agadir and connecting Essaouira to the national rail network.

    The pipeline forms part of the government’s 2026-31 programme, presented to parliament last week.

    The Marrakech-Agadir link is estimated to cost close to MD55bn ($5.5bn) and will cover a 240-kilometre (km) route through the High Atlas Mountains via Chichaoua. Civil engineering structures, including tunnels and viaducts, are expected to account for nearly 70% of the alignment.

    In September, the government issued a decree declaring the Marrakech-Agadir and Chichaoua-Essaouira rail corridors to be of public utility, paving the way for land acquisition and expropriation procedures.

    Under the long-term masterplan Plan Rail Maroc 2040, Essaouira is expected to connect to the network via a separate line branching off at Chichaoua, designed for operating speeds of up to 200km an hour. The mainline to Agadir is designed for speeds of up to 320km/h.

    The 2030-35 cycle also includes rehabilitating the Casablanca-Khouribga-Oued Zem line; constructing a new line between Oued Zem and Beni Mellal via Bejaad, with a branch to Fquih Ben Salah; doubling and upgrading the 140km Benguerir-Safi line; expanding capacity on the Fez-Oujda corridor; and building new-generation passenger stations.

    The plans follow Morocco’s ongoing MD134bn ($13.4bn) 2024-30 rail investment programme, which focuses on completing the Kenitra-Marrakech high-speed line ahead of the 2030 Fifa World Cup.

    The programme also includes developing regional express network services across five regions, electrifying the Fez-Oujda line and completing a freight rail link to the Nador West Med port.

    Work on the Kenitra-Marrakech line had reached about 30% by May 2026, with commercial services targeted to begin in September 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20920349/main.jpg
    Yasir Iqbal
  • Riyadh tenders King Salman Stadium works

    26 October 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Sports Ministry has tendered a contract covering early works at King Salman International Stadium in Riyadh.

    The scope includes enabling works, site preparation and initial construction activities.

    The tender was issued on 11 October, with a submission deadline of 19 November.

    The stadium will cover about 660,000 square metres (sq m) and seat 92,000. Facilities will include a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

    The wider development will include sports facilities covering more than 360,000 sq m, including two training fields and fan zones; a closed sports hall; an Olympic-sized swimming pool; an athletics track; and outdoor courts for volleyball, basketball and padel.

    The stadium is set to host the final of the 2034 Fifa World Cup and will serve as the Saudi national football team’s main base.

    US-based architectural firm Populous is the lead architect for the stadium.

    Construction of the stadium is expected to be completed by 2029.

    The stadium will be located next to King Abdulaziz Park.

    Firms submitted prequalification statements for the main design-and-build contract in February.

    Saudi stadium plans

    In August 2024, MEED reported that Saudi Arabia planned to build 11 new stadiums and refurbish four facilities for the 2034 Fifa World Cup. 

    Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.

    A further 10 cities will host training bases: Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

    There are expected to be 134 training sites in the kingdom, including 61 existing facilities and 73 new venues.

    Saudi Arabia was officially selected to host the 2034 Fifa World Cup during an online convention of Fifa member associations at the Fifa Congress on 11 December 2024.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20919233/main.jpg
    Yasir Iqbal
  • Aramco selects contractors for five offshore tenders

    23 October 2026

     

    Saudi Aramco has selected contractors for five offshore tenders covering the engineering, procurement, construction and installation (EPCI) of structures at the Abu Safah, Berri, Manifa, Marjan, Safaniya and Zuluf offshore oil and gas fields in Saudi Arabia.

    The tenders are numbers 167, 168, 169, 170 and 171 on Aramco’s Contract Release and Purchase Order (CRPO) system, and are estimated to be worth up to $2bn combined.

    Abu Dhabi government-owned NMDC Energy has won CRPOs 167, 169 and 171, while Italian contractor Saipem has secured CRPOs 168 and 170, according to sources.

    NMDC Energy confirmed its contract awards from Aramco in a disclosure to the Abu Dhabi Securities Exchange on 23 October, saying the three contracts are valued at AED2.8bn ($763.3m).

    Work on the contracts is expected to be completed in 18-23 months, NMDC Energy said in its filing, without providing further details.

    Saipem has yet to confirm its contract awards from Aramco.

    The basic scope of EPCI work on the tenders is as follows:

    • CRPO 167 – eight jackets at the Marjan field development
    • CRPO 168 – four production deck modules (PDMs) at the Abu Safah, Berri, Manifa and Safaniya fields
    • CRPO 169 – three PDMs at the Marjan field development
    • CRPO 170 – three PDMs at the Marjan field development
    • CRPO 171 – three PDMs at the Zuluf field development

    Aramco issued the five CRPOs to contractors in its Long-Term Agreement (LTA) pool of offshore service providers in December last year, setting an initial bid submission deadline of 3 February.

    The Saudi energy giant has since extended the bid submission deadline several times – to 31 March, 1 June, 1 July and then 30 July – to allow LTA contractors sufficient time to prepare proposals.

    At the request of some bidders, Aramco granted a final two-day extension, with LTA contractors submitting their proposals for the five CRPOs on 1 August, MEED previously reported.

    Aramco had previously indicated its intention to award contracts for CRPOs 167-171 by October, and the contract awards affirm it has adhered to this schedule.

    Aramco’s LTA pool of offshore service providers comprises the following entities:

    • Saipem (Italy)
    • McDermott International (US)
    • Larsen & Toubro Energy Hydrocarbon (LTEH, India) / Subsea7 (UK)
    • NMDC Energy (UAE)
    • Lamprell (UAE/Saudi Arabia)
    • China Offshore Oil Engineering Company (China)
    • Dynamic Industries (US)
    • Sapura Energy (Malaysia)
    • TechnipFMC (France) / MMHE (Malaysia)
    • Hyundai Heavy Industries (South Korea)

    In April 2025, Aramco renewed its LTAs with the following contractors, whose contracts had either lapsed or were close to expiry:

    • Saipem
    • McDermott International
    • Larsen & Toubro Energy Hydrocarbon / Subsea7
    • NMDC Energy
    • Lamprell
    • China Offshore Oil Engineering Company
    ALSO READ: Aramco upstream spending gathers pace

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20869888/main3523.jpeg
    Indrajit Sen
  • Contractors complete Riyadh airport Terminal 6 work

    23 October 2026

     

    Three contractor teams have completed the early contractor involvement (ECI) phase for Terminal 6 at King Salman International airport (KSIA) in Riyadh, moving the scheme towards a main construction tender and contract award.

    The participating consortiums are:

    • UCC Holding / Consolidated Contractors Company (Qatar/Greece)
    • Modern Building Leaders / Powerchina / Metallurgical Corporation of China (loca/China/China)
    • Al-Gihaz Holding / TAV Construction / Webuild (local/Turkiye/Italy)

    King Salman International Airport Development Company (KSIADC), a subsidiary of Saudi sovereign wealth vehicle the Public Investment Fund, is delivering the terminal package on an ECI basis.

    Under the completed phase, the shortlisted teams submitted detailed construction methodologies and technical design proposals.

    Terminal 6 is planned to boost the airport’s annual capacity by 40 million passengers. KSIADC aims to complete the terminal ahead of Expo 2030 Riyadh.

    In May last year, MEED reported that US-based Bechtel had been appointed as delivery partner for the passenger terminals at KSIA.

    KSIADC's acting CEO Marco Mejia previously confirmed that the airport’s masterplan has been completed. UK-based Foster + Partners designed the masterplan, including the terminals, six parallel runways and a multi-asset real estate district.

    US-based engineering firm Jacobs is providing specialist consultancy services for the masterplan and runway design, while UK-headquartered Mace is acting as delivery partner for the broader development. Local firm Nera secured the airspace design consultancy contract.

    The KSIA project covers about 57 square kilometres (sq km) and incorporates the existing terminals at King Khalid International airport. The scheme will feature 12 sq km of airport support facilities, residential and recreational zones, retail assets and logistics parks.

    The development is targeted to handle up to 120 million passengers a year by 2030 and 185 million passengers by 2050, in addition to an annual cargo throughput of 3.5 million tonnes by 2050.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20860938/main.jpg
    Yasir Iqbal
  • Aramco seeks to build sulphur-handling facilities at Ras Al-Khair

    22 October 2026

     

    Saudi Aramco is engaging developers for a planned project to build sulphur-handling facilities at Ras Al-Khair port on Saudi Arabia’s eastern coast.

    Under the build-own-operate-transfer (BOOT) contract, the selected developer would be required to build facilities at Ras Al-Khair port capable of receiving, handling, forming and exporting up to 9,500 metric tonnes a day (t/d) of molten sulphur.

    Additionally, the appointed contractor would be responsible for engineering, procurement and construction, as well as operations and maintenance.

    According to sources, the Saudi energy giant floated the tender for the Ras Al-Khair sulphur-handling facilities project last year. Companies bidding for the BOOT contract have until 30 December to submit proposals, with the previous bid-submission deadline being on 19 September.

    The following developers, among others, are understood to be bidding for the Ras Al-Khair sulphur-handling facilities project:

    • Jereh Group (China)
    • Lamar Holding (Saudi Arabia)
    • Vision Invest (Bahrain/Saudi Arabia)

    Separately, Aramco has appointed Germany-headquartered Fichtner as the consultant on the project.

    The broad scope of work on the project includes development, design, financing, construction, commissioning, testing, ownership, insurance, operations and maintenance of:

    • an onshore sulphur handling and processing station, comprising rail and truck sulphur unloading, molten sulphur storage and sulphur forming facilities;
    • a sulphur exporting station / berth facilities located at berth number 19 at Ras Al-Khair port, comprising formed sulphur storage and a ship loader, with a rail spur system to connect to the Saudi Arabia Railway line to deliver the molten sulphur to the onshore facility, and a sulphur conveyor system to transfer the formed sulphur from the onshore facility to the berth facility;
    • starting from the commercial operation date, the sale of the dependable capacity to Aramco and, to the extent dispatched by Aramco, the formed sulphur output of the plant; and
    • the transfer of the shares in the project company, or alternatively the dismantling and removal of, or transfer of, the plant to Aramco.

    The allocated area for the plant is 1.605 million square metres (sq m), which includes 1.5 million sq m allocated to the onshore facility and 105,000 sq m allocated to the berth facility. The project operator is required to accommodate adequate space for any potential capacity expansion.

    The land for the onshore sulphur station facility is under the jurisdiction of the Royal Commission for Jubail & Yanbu, while the berth plot is under the administration and management control of the Saudi Port Authority (Mawani).

    ALSO READ: Lamprell signs Ras al-Khair fabrication deal for Saudi offshore job

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20842631/main3523.jpg
    Indrajit Sen