Sepco 3 and Doosan Enerbility sign PP12 contract
26 March 2025
China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea's Doosan Enerbility have signed the engineering, procurement and construction (EPC) contract with Saudi Electricity Company (SEC) for the expansion of the Riyadh Power Plant 12 (PP12).
MEED exclusively reported in November last year that the team would undertake the expansion of PP12.
The expansion project comprises a greenfield combined-cycle gas turbine (CCGT) power generation plant with a capacity of 1,800MW.
A local media report citing a Doosan Enerbility company official previously indicated that the share of the South Korean contracting firm in the EPC contract is valued at KD890bn ($611m).
Sepco 3 is the EPC consortium leader, which implies its share of the total contract could be higher.
The EPC consortium will be responsible for the design, central equipment supply and integrated commissioning of the PP12 expansion project.
Located about 150 kilometres northwest of the capital, Riyadh, the power plant is expected to be completed in 2028.
PP12 main plant
A consortium of South Korea's GS E&C and the local Arabian Bemco Contracting Company won the main contract to build the original PP12 plant in Riyadh in 2012, according to MEED Projects data.
US-headquartered GE, now known as GE Vernova, supplied eight 7F 5-series gas turbine-generators for the plant, which became operational in 2016.
At the time, the capacity of the plant was between 1,745MW and 2,181MW.
Saudi Arabia is expanding two other thermal power plants in addition to PP12.
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 undertake the EPC contract for both schemes.
Liquid fuel displacement programme
Saudi Arabia has been ramping up the development and construction of gas-fired power stations in line with its liquid-fuel displacement programme.
According to the Energy Institute, oil accounted for 152.1 terawatt-hours (TWh), or about 36%, of the total electricity generation in Saudi Arabia in 2023, which stood at 422.9TWh.
Latest available data from MEED Projects and MEED suggests that generation and cogeneration plants powered by natural gas account for two-thirds, or 66.7%, of the 53GW total capacity under construction or approaching construction in the kingdom as of March.
MEED’s April 2025 report on Saudi Arabia includes:
> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING: Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
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