Saudi Electricity Company plans to add 30GW of capacity
13 June 2024
Riyadh-headquartered utility Saudi Electricity Company (SEC) is understood to be looking at developing approximately 30,000MW of gas-fired capacity within and outside Saudi Arabia.
SEC in 2022 completed divesting its full interest in the principal buyer, Saudi Power Procurement Company (SPPC), which has enabled it to bid for contracts to develop and operate power generation plants, in addition to operating the kingdom's power transmission and distribution network.
Related read: Saudi energy restructuring gains momentum
According to industry sources, SEC has booked in advance some 30GW of gas turbine capacity with the industry's leading original equipment manufacturers (OEMs) in anticipation of domestic and overseas demand for gas-fired generation power plants.
One of the sources said potential projects in Saudi Arabia will be developed through a bilateral agreement with SPPC and potentially in partnership with Saudi utility developer Acwa Power.
MEED understands SEC and SPPC have appointed a financial adviser to support the development of these future projects.
A team comprising SEC and Acwa Power bid and won the contracts to develop and operate the Qassim 1 and Taiba 1 independent power projects last year. Each plant has a capacity of 1,800MW. The two projects are valued at SR14.6bn ($3.9bn).
A team that includes SEC is also expected to bid for the contracts to develop the Remah 1 and 2 and Nairiyah 1 and 2 gas-fired IPP projects being tendered by SPPC.
Ratings upgrade
On 24 May, Fitch Ratings upgraded SEC's ratings from A to A+, aligning it to be on par with the national sovereign rating.
SEC said: "The upgrade recognises SEC’s stable financial profile which is secured by the conversion of SR168bn of SEC's liabilities into equity-like instruments, the company’s leverage headroom and strong cash flow visibility, and its crucial role in KSA's energy plans".
It added that the upgrade "was driven by….SEC’s robust decision-making, strong government support, and alignment with national policy".
"The government’s 81% ownership, strategic oversight and SEC's key role in Saudi Arabia's decarbonisation efforts underscore this support."
Notably, in April, the Japan Bank for International Cooperation (JBIC) signed a memorandum of understanding with SEC to strengthen their partnership.
JBIC said the MoU entails developing solutions to support SEC’s future projects through investments by Japanese companies, the introduction of Japanese products and technologies, and the provision of financial support.
Six-year capex
Last month, MEED reported that SEC was planning a SR472bn ($126bn) capital expenditure programme over the next six years to enhance the kingdom’s power generation, transmission and distribution infrastructure and to meet future demand growth.
The largest component of this spending drive is the transmission sector, with a planned investment requirement of SR351bn. A total of SR116bn is envisaged for the distribution sector.
A mere SR6.2bn is dedicated to power generation projects. This comparatively low amount is due to most new electricity production plants now tendered by SPPC under the kingdom’s public-private partnership (PPP) framework.
Related read: Saudi Arabia plans two new gas-fired power plants
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Egypt signs $420m Gabal El-Zeit wind agreements10 June 2026
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Egypt signs $420m Gabal El-Zeit wind agreements
10 June 2026
Egypt has signed agreements worth $420m for the investment, operation and power purchase of the 580MW Gabal El-Zeit wind power complex in the Red Sea region.
Gabal El-Zeit 1 has a capacity of 240MW, while Gabal El-Zeit 2 and 3 have capacities of 220MW and 120MW, respectively.
The agreements were signed between Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and Dubai-based Alcazar Energy.
Under the agreements, Alcazar Energy will invest in, operate and manage the farms through a project company established under Egyptian law.
The company will be responsible for technical operations, maintenance and efficiency upgrades while maintaining a minimum capacity of 580MW throughout the contract period.
The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant.
The agreements follow earlier efforts to privatise the Gabal El-Zeit wind complex, involving a deal with UK-headquartered private equity firm Actis.
According to the Egyptian government, the project supports the country’s state ownership policy and national energy strategy, which aim to increase the share of renewable energy in the electricity mix to 45%.
The Gabal El-Zeit area on Egypt’s Red Sea coast is one of the country’s most established wind power development zones. The latest Gabal El-Zeit wind farm was completed in 2014, according to MEED Projects data. Germany’s Siemens Gamesa was the main contractor.
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Majid Al-Futtaim awards $545m Ghaf Woods contract to ECC
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The contract covers the construction of one-, two- and three-bedroom apartments and duplex residences across the two Capria clusters.
The award adds to a series of major construction contracts Majid Al-Futtaim has issued across its Dubai communities in recent years.
In May, local contractor Al-Sahel Contracting was awarded a AED700m contract for the Distrikt development, also at Ghaf Woods.
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Saudi Arabia and Turkiye sign railway agreements
10 June 2026
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Saudi Arabia and Turkiye have signed two memorandums of understanding (MoUs) to strengthen bilateral cooperation in the railway and logistics sectors, advancing Riyadh’s ambitions to become a global logistics hub.
Transport and Logistics Services Minister Saleh Al-Jasser and Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu signed the agreements at the ministry’s headquarters in Riyadh on 9 June, following ministerial talks held with a high-level Turkish delegation. Transport General Authority president Fawaz Al-Sahli and officials from the kingdom’s transport and logistics sector were also present.
Agreement scope
The first MoU covers logistics services and operations, including the exchange of expertise, policies and regulations. The second focuses on railway technologies, signalling and communication systems, railway digitalisation, human capacity development, the localisation of the railway industry and measures to reduce the sector’s environmental impact.
More broadly, the agreements cover cooperation on railway standards and related innovations, the exchange of expertise on the design, operation and maintenance of rail projects, and engineering, infrastructure and safety standards.
The two sides will also cooperate on research and development, with provision for joint workforce training through specialist railway academies.
Riyadh said the agreements will help support its National Strategy for Transport and Logistics Services and Saudi Vision 2030, which seeks to position the kingdom as a logistics bridge connecting three continents.
Turkish projects
Turkish contractors have already established themselves as key players in the region’s rail sector. In 2012, Yapi Merkezi secured a $2.1bn contract for work on the Haramain high-speed rail network in Saudi Arabia, while Turkish firms Mapa and Limak are leading the ongoing civil works on Dubai’s $5.5bn Metro Blue Line project as part of a China Railway Rolling Stock Corporation (CRRC) consortium. Turkish consultancy Proyapi Muhendislik ve Musavirlik Anonim Sirketi has also won design contracts for the 111km Kuwait National Rail Road project.
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Joint venture tenders Algeria field development contract
10 June 2026
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Hassi Bir Rekaiz Group (GHBR), which operates Algeria’s Hassi Bir Rekaiz field, has issued a tender for phase 2A of the asset’s field development project.
GHBR is a joint venture of Algeria’s national oil and gas company Sonatrach and Thailand’s national exploration and production company PTTEP.
The scope of the contract focuses on the “provision of engineering and supervision services”, according to documents published by Sonatrach.
The tender has been issued with a bid deadline of 16 June 2026.
In May, GHBR signed a $1.1bn contract for phase two of the Hassi Bir Rekaiz development project.
The contract was won by a consortium of Egypt’s Petrojet and Italian engineering and contracting company Arkad.
Petrojet’s portion of the project was estimated to be worth around $600m, and Arkad’s portion was estimated to be worth $500m.
The contract used the engineering, procurement, construction and commissioning model.
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Algeria extends deadline for urea-formaldehyde project
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The latest bid deadline is 15 June.
The contract uses the engineering, procurement, construction and commissioning model, and the bid deadline for technical tender submissions was originally set for early April.
The condensed urea-formaldehyde unit will be located at the CP1-Z facility.
The CP1-Z facility began operations in 1975 and has a capacity of 152,000 tonnes a year. It produces products including methanol, resin and formol.
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