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
  • Adnoc plans new offshore-to-onshore oil transport pipeline

    20 August 2026

     

    Abu Dhabi National Oil Company is moving ahead with an ambitious plan to build an oil pipeline network that will transport oil from its main offshore oil processing islands in the Gulf to its onshore crude export terminal in Jebel Dhanna, Abu Dhabi.

    The planned pipeline network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport those volumes across 300 kilometres inland to the Jebel Dhanna terminal.

    According to sources, the proposed pipelines will eventually connect to the West-East crude pipeline network currently being built from Abu Dhabi’s Jebel Dhanna to the emirate of Fujairah, and is expected to be commissioned in 2027.

    The Abu Dhabi energy giant has awarded a contract for concept studies and front-end engineering and design (feed) to Abu Dhabi-based NT Energies, a joint venture of Abu Dhabi-based contractor NMDC Energy and France’s Technip Energies, sources told MEED.

    NT Energies is expected to carry out the concept studies and feed on a “fast-track basis”, with the work anticipated to take seven months, sources said.

    A kick-off meeting between the client and the appointed consultant took place on 6 July, sources added.

    Additionally, Adnoc has appointed Australia-headquartered Worley to provide project management consultancy (PMC) services, sources further said.

    West-East oil pipeline

    In May, Adnoc said it was accelerating work on the West-East crude transport pipeline project from Jebel Dhanna to Fujairah, upon directions from its board.

    The West-East pipeline project involves constructing a cross-country pipeline to transport crude from Adnoc’s export terminal at Jebel Dhanna to the Fujairah terminal, covering a distance of about 520km.

    The pipeline will double Adnoc’s crude export capacity through Fujairah on the Indian Ocean coast and enable shipments to bypass the geopolitically volatile Strait of Hormuz.

    Crude will be sourced from Adnoc’s offshore processing centres at Das, Zakum and Umm Lulu islands before being stored at new storage facilities to be built at the Jebel Dhanna terminal.

    The pipeline will be segmented into three sections:

    • Jebel Dhanna to Habshan main pumping station (MPS) – 115km
    • Habshan MPS to Sweihan depot – 254km
    • Sweihan depot to Fujairah terminal – 153km

    Adnoc awarded Egyptian contractor Engineering for Petroleum & Process Industries (Enppi) an engineering, procurement and construction management (EPCm) contract for the project in February 2024.

    Adnoc’s total spend on EPCm works could be as high as $3bn, MEED previously reported.

    Sources have told MEED that Adnoc has, in turn, appointed state-owned China Petroleum Pipeline (CPP) and locally based Bin Asheer to carry out construction works on the three segments of the West-East pipeline network.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18887774/main0639.jpg
    Indrajit Sen
  • Contractors confirm Al-Maktoum airport people-mover award

    20 August 2026

    Register for MEED’s 14-day trial access 

    A team of Japan’s Mitsubishi Corporation and Indian contractor Larsen & Toubro (L&T) has confirmed that it has won a design-and-build contract for the automated people-mover (APM) system for phase one of Al-Maktoum International airport in Dubai.

    In a statement released earlier today, L&T classified the contract as large, a term the company uses to denote an order value of $261m-$523m.

    MEED exclusively reported in July that Dubai Aviation Engineering Projects (DAEP) had selected a contractor to deliver the APM system as part of the first phase of the $35bn expansion of the airport.

    The APM system will serve as a critical facility for operations at Al-Maktoum International. 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 at the airport.

    The firms submitted the bids for the project in July last year, as MEED exclusively reported.

    The contract is the latest in a series of awards signed by DAEP recently. It has awarded contracts valued at about AED13bn ($3.5bn), with construction works currently under way on several airport packages.

    These include enabling works, the second runway and the initial structural foundations for passenger terminals and gates.

    Upcoming awards

    In June, DAEP said that it will award contracts worth over AED55bn ($15bn) by the end of this year for construction works at Al-Maktoum International airport.

    The projects slated for contract awards include the substructure works for the western passenger terminal, the fourth aircraft concourse building and the baggage handling system, in addition to the superstructure works for the western passenger terminal and the first, second and third aircraft concourses.

    The packages also encompass long-span structural frameworks for buildings covering about 1.5 million square metres (sq m), infrastructure works for the southern airfield area and power generation and district cooling plants supporting the construction programme.

    The award of the facade and roofing packages is also planned for this year.

    Construction progress

    In May last year, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works on the terminal were awarded to Abu Dhabi-based Tristar E&C.

    Construction on the project’s first phase is expected to be completed by 2032.

    Construction of substructure works began in November last year, when DAEP formally selected a contractor to deliver the package.

    The government approved the updated designs and timelines for its largest construction project in April 2024.

    In a statement, the authorities said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    According to an official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000 sq m facility with an annual capacity of 45 million passengers.

    It will be the second of three terminals at the airport.

    In September 2024, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead masterplanning and design consultant on the expansion of Al-Maktoum.

    The airport’s construction is planned to be undertaken in three phases. It will cover an area of 70 square kilometres south of Dubai and will have five parallel runways and 430 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.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18884056/main.png
    Yasir Iqbal
  • Saudi Arabia awards estimated $1bn phosphate rail deal

    20 August 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabian Railways (SAR) has awarded an estimated SR4bn-plus ($1.1bn) contract to add another track to the first section of the existing phosphate transport railway network in the kingdom’s Eastern Province.

    The contract was awarded to local firm Alomaier Trading & Contracting Company.

    The scope includes track doubling, alignment modifications, utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.

    The scope also covers support for signalling and telecommunications systems.

    The existing railway line runs from the Waad Al-Shamal mines to Ras Al-Khair. The new project will cover about 100 kilometres (km), connecting the AZ1/Nariyah Yard to Ras Al-Khair.

    Switzerland-based engineering firm ARX is the project consultant.

    The project is the first of four packages for the phosphate railway line that SAR is expected to award imminently.

    In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track on the North Train freight line and construct three new freight yards.

    Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

    Adding a second track and the freight yards will significantly increase cargo-carrying capacity on the network and facilitate growth in industrial production. Project implementation is expected to take four years.

    State-owned SAR is also considering increasing the localisation of railway-focused materials and equipment, including the construction of a cement sleeper manufacturing facility.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18876428/main.jpg
    Yasir Iqbal
  • Libya and Tunisia reschedule joint oil and gas licensing round

    19 August 2026

    The Libyan-Tunisian Joint Oil Exploration, Exploitation & Petroleum Services Company (Joint Oil) has rescheduled its planned licensing round for offshore exploration and development projects in a zone spanning the waters of both countries.

    The bidding process is now due to open on 7 September 2026, with bid submissions due by 8 January 2027.

    Previously, in May, Joint Oil said it planned to open the bid round on 1 August 2026.

    The upcoming round will offer two oil and gas packages. The first is an exploration package across the 3,000-square-kilometre Joint Oil Block, in water depths of 80-120 metres.

    Significant data is available on the geology of this area, including 6,500km of 2D and 1,900 square kilometres of 3D seismic data. Data also exists from a run of legacy wells dating to 1976.

    The second package covers development of the Zarat discovery specifically. This is a gas-condensate reservoir straddling the boundary between Tunisia’s national acreage and the jointly-held Joint Oil Block.

    Joint Oil is equally owned by Tunisia’s national oil company, ETAP, and OLA Energy Holdings, a subsidiary of the Libya Africa Investment Portfolio (LAIP).

    LAIP is a subsidiary of Libya’s sovereign wealth institution, the Libya Investment Authority.

    Joint Oil was established under a bilateral agreement between Libya and Tunisia in 1988 to explore and develop hydrocarbons in offshore areas shared by the two countries.

    The key dates from the new schedule for the licensing round are:

    • 7 September 2026: Bid round opens; qualified offshore operators can apply for access to the Virtual Data Room
    • 9 September 2026: Joint Oil presents the opportunity at the MMEA Scout Group meeting in London
    • 29-30 September 2026: Joint Oil presents at the World Energy Summit in London
    • 31 December 2026: Bid round closes
    • 8 January 2027: Bid submissions due
    • 26 February 2027: Winning bidders notified
    • 30 April 2027: Formal awards expected

    Texas-based Moyes & Co is acting as a strategic adviser on the licensing round.

    Houston-headquartered Marathon discovered the Zarat field in 1992. It is estimated to hold around 0.4 trillion cubic feet of recoverable gas and 50 million barrels of liquids.

    A previous development project concept centred on a mobile production unit, worth around $1bn, tied back to the nearby Miskar platform.

    Despite this, the field has remained undeveloped for over three decades.

    One of the key challenges to developing the reserve is its high carbon dioxide content.

    Joint Oil has run bid rounds for the acreage before without success, including as recently as late 2023.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18861047/main0914.jpg
    Wil Crisp
  • UAE cuts trade and financial links with Iran

    19 August 2026

    Register for MEED’s 14-day trial access 

    The UAE has halted all trade, commercial exchanges and financial transactions with Iran until further notice, the Ministry of Foreign Affairs said on 19 August.

    The suspension has been imposed in light of escalations that undermine regional and international peace and security, the ministry said. It did not specify a timeframe for any resumption.

    The ministry rejected allegations regarding the status of the economic relationship between the UAE and Iran, and restated the UAE's commitment to dialogue, cooperation and regional integration as means of advancing peace, stability and prosperity in the region.

    It said the UAE remains committed to safeguarding the integrity of the financial system, in line with international law and global standards.

    The suspension covers the full range of commercial and financial links between the two countries. The UAE has historically been one of Iran's most significant trading partners, with much of the relationship built on re-export trade routed through Dubai to Iranian ports across the Gulf.

    The ministry statement did not detail the mechanism for enforcing the halt, the sectors affected, or arrangements for existing contracts and in-transit cargo.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18857953/main0856.jpg
    Colin Foreman