meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Electricity Company in talks for five power plants

10 July 2024

Register for MEED's 14-day trial access 

Bilateral discussions to develop combined-cycle gas turbine (CCGT) electricity generation plants in Saudi Arabia are under way between Riyadh-headquartered utility Saudi Electricity Company (SEC) and the kingdom's principal buyer, Saudi Power Procurement Company (SPPC).

According to an industry source, the discussions revolve around five potential CCGT power generation plants, each with a capacity of between 1,500MW and 2,000MW.

"I believe the capacity is required urgently and that SEC is also holding parallel discussions with gas turbine original equipment manufacturers (OEMs) for these planned power generation plants," the source said.

This development aligns with SEC's plan to develop approximately 30,000MW of gas-fired capacity within and outside Saudi Arabia, which MEED reported on 13 June.

In 2022, SEC completed divesting its full interest in 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: Developers regroup for Saudi renewables plans

According to industry sources, SEC has booked in advance some 30GW of gas turbine capacity with the industry's leading original OEMs in anticipation of domestic and overseas demand for gas-fired generation power plants.

One of the sources said at the time that potential projects in Saudi Arabia would 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 (IPPs) 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 IPPs being tendered by SPPC.

New IPPs

MEED reported in June that SPPC has invited companies to bid for the transaction advisory contracts for its next gas-fired IPPs.

The Saudi principal buyer is understood to have 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.

In addition to these projects, the tendering process is under way for the Remah 1 and 2 and Nairiyah 1 and 2 CCGT IPPs, with a bid deadline set for the end of July.

The urgent capacity building for gas-fired power plants aligns with the kingdom's liquid displacement programme, considering that liquid fuel or oil-fired plants still account for a substantial portion of its existing fleet.

It also supports the need to build baseload capacity in anticipation of renewable energy accounting for 50% of the kingdom's electricity production mix by 2030, the expected economic and industrial boom arising from the implementation of its Vision 2030, and a broad plan to participate in regional clean energy trade.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12086020/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Riyadh shifts bid deadline for King Salman Stadium works

    11 November 2026

     

    Saudi Arabia’s Sports Ministry has set a deadline of 1 December for a contract covering early works at the King Salman International Stadium in Riyadh.

    The tender scope encompasses enabling works, site preparation and initial construction activities. The tender was issued on 11 October, carrying an initial submission deadline of 19 November. Contractors previously submitted prequalification statements for the main design-and-build contract in February.

    Designed by US-based architectural firm Populous, the stadium will cover approximately 660,000 square metres (sq m), seat 92,000 spectators and stand adjacent to King Abdulaziz Park. Facilities will feature a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

    The broader masterplan encompasses more than 360,000 sq m of ancillary facilities, featuring two training fields, fan zones, a closed sports hall, an Olympic-sized swimming pool, an athletics track, and outdoor courts for volleyball, basketball and padel.

    Scheduled for completion by 2029, the venue will serve as the home base for the Saudi national football team and host the opening match and final of the 2034 Fifa World Cup.

    Saudi stadium plans

    In August 2024, MEED reported that Saudi Arabia plans to build 11 new stadiums and refurbish four existing venues for the 2034 tournament. Eight venues will be located in Riyadh, four in Jeddah, and one each in Al-Khobar, Abha and Neom.

    An additional 10 cities will host team base camps: Al-Baha, Jazan, Taif, Medina, AlUla, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah. Across the kingdom, organisers plan to deploy 134 training sites, comprising 61 existing facilities and 73 new builds.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21325461/main.jpg
    Yasir Iqbal
  • Dubai approves metro extension to Al-Maktoum airport

    10 November 2026

    Dubai’s Executive Council has approved a project to extend the Dubai Metro’s Route 2020 to Al-Maktoum International Airport City, with passenger services scheduled to begin operations in 2031.

    Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum, Crown Prince of Dubai, announced the decision following a council meeting held during the UAE Government Annual Meetings 2026.

    The rail project forms part of a package of strategic schemes worth over AED11bn ($3bn) approved by the council.

    The wider approvals include a comprehensive framework to upgrade community facilities and public services by 2040, with priority given to residential communities for UAE citizens.

    The project approval follows the procurement of detailed design work for the rail link. MEED exclusively reported in September that Dubai’s Roads & Transport Authority (RTA) had awarded US-based engineering consultancy Aecom the design contract for the Route 2020 extension.

    The planned extension will run for about 3 kilometres from the existing Expo 2020 terminus station to connect directly with the West Terminal of Al-Maktoum International airport. The scheme will add two new stations to the network.

    The existing Route 2020 corridor is a 15km spur that branches off the Dubai Metro Red Line at Jebel Ali station. It comprises 11.8km of elevated viaduct and 3.2km of underground track, serving five elevated and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21301168/main.png
    Yasir Iqbal
  • Egypt seeks to accelerate gas pipeline project with Libya

    10 November 2026

    Egypt aims to accelerate a range of energy projects with Libya, including gas pipeline links, according to a statement from the Egyptian Foreign Minister Badr Abdelatty.

    Other projects include a scheme to refine Libyan crude in Egypt and an electricity interconnection.

    Abdelatty’s comments came in a ministry statement after a meeting with Libya’s acting oil and gas minister, Khalifa Abdulsadek, in the Libyan capital of Tripoli.

    Egypt is currently trying to address an energy squeeze that has escalated ​due to elevated global liquefied natural gas (LNG) prices since the ​start of the US-Israeli war on Iran in February of this year.

    In his statement, Abdelatty called ‌for ⁠cooperation on petroleum products and the completion of projects to refine Libyan oil in Egypt and re-export ​it.

    He also said that Abdulsadek would ​visit ⁠Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.

    The ⁠statement ​did not provide ​details on costs or the status of the projects.

    Plans for new gas pipeline links with Libya are just one of several ambitious gas pipeline plans Egypt is pursuing.

    In October, the Italian oil and gas company Eni signed the main engineering, procurement, construction and drilling contracts for a project to export gas from reserves in Cyprus using a major pipeline to Egypt.

    The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.

    The awards included a $170m contract won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help transport gas to Egypt’s Damietta LNG facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273777/main.jpg
    Wil Crisp
  • Omani company signs Kuwait drilling contract

    10 November 2026

    Oman’s MBPS has signed a drilling rig contract worth $127.3m with state-owned upstream operator Kuwait Oil Company (KOC).

    Under the terms of the deal, MBPS will supply and operate three newly built 1,000-horsepower land rigs for drilling and workover operations, according to a company statement.

    The UAE-based oil field services company Adnoc Drilling is a majority shareholder in MBPS.

    The chief executive of MBPS, Salim Al-Harthy, said: “This is another important milestone for MBPS and a strong reflection of KOC’s confidence in our capabilities.

    “It further strengthens our presence in Kuwait and our commitment to delivering safe, reliable and efficient drilling and workover services across the region.”

    He : “My sincere appreciation to KOC for their continued trust, and to our MBPS team for their hard work and dedication in making this possible.”

    In October last year, KOC said it planned to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    The spending was part of a KD9.8bn budget, the company’s biggest ever, allocated for drilling and maintenance of up to 6,193 wells by the end of this decade.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273731/main.png
    Wil Crisp
  • Adnoc Drilling wins $315m Kuwait offshore rig deals

    10 November 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi National Oil Company (Adnoc Group) subsidiary, Adnoc Drilling, has been selected for two offshore drilling rig contracts in Kuwait with a combined maximum value of KD96.55m ($315m), according to documents published by Kuwait’s Official Gazette.

    The Higher Purchasing Committee of state-owned Kuwait Petroleum Corporation (KPC) has given approval for its subsidiary Kuwait Oil Company (KOC) to award the contracts to the Abu Dhabi-listed drilling contractor after Adnoc Drilling submitted the lowest compliant bids.

    While the maximum combined contract value has been confirmed as KD96.55m ($315m), the individual contract values, rig identities, durations and expected commencement dates have not been disclosed.

    The approval comes as Kuwait moves to expand offshore exploration and development following a series of discoveries in its territorial waters.

    It is currently unclear how Kuwait will provide security for its planned offshore oil and gas projects in the Gulf, adding uncertainty to the outlook for these plans.

    On 5 October, KPC chief executive Shaikh Nawaf Al-Sabah reiterated the company’s commitment to developing three major offshore oil discoveries in the region.

    KPC initially launched the Al-Seef project to develop the three fields in February, just weeks before the US and Israel attacked Iran, triggering a regional war that has sparked a crisis in Kuwait’s oil and gas sector.

    The regional conflict has seriously disrupted shipping through the Strait of Hormuz, a key export route for Kuwaiti oil.

    The war has also led to dozens of attacks on Kuwaiti oil and gas infrastructure, with at least one causing damage to a Kuwaiti offshore platform.

    This attack took place on 12 July, when a drone struck a KOC offshore drilling platform in Kuwaiti territorial waters, causing damage to the platform and injuring one worker.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273678/main2430.jpg
    Wil Crisp