meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi power buyer holds Remah and Nairiyah meetings

6 March 2024

 

Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has invited prequalified bidders for the contracts to develop and operate four combined-cycle gas turbine (CCGT) power generation plants to a job explanation meeting.

The teams have also been invited to visit the sites of the planned independent power producer (IPP) projects, which have a total combined capacity of 7.2GW.

The four IPP projects will have a power generation capacity of 1,800MW each.

The projects are:

  • Remah 1 
  • Remah 2
  • Al Nairiyah 1
  • Al Nairiyah 2

Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Al Nairiyah 1 and 2 will be in the Eastern Region.

SPPC expects to receive proposals for the contracts by 30 June.

The companies that have been prequalified to bid for the contracts to develop the Remah and Nairiyah IPP projects are:

  • Abu Dhabi National Energy Company (Taqa) / Jera (Japan)
  • Ajlan Brothers (local) / China Power International Holding (China) 
  • China Gezhouba Overseas Investment Company (China)
  • Kahrabel / Engie (UAE/France)
  • EDF (France)
  • International Company for Water & Power Projects (Acwa Power, local)
  • General Electric Company (US)
  • Gulf Energy Development Public Company
  • Gulf Investment Corporation (Kuwait)
  • Jomaih Energy & Water Company (Jenwa, local)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni Corporation (Japan)
  • Mitsubishi Power (Japan)
  • Nebras Power (Qatar)
  • Power & Water Utility Company for Jubail & Yanbu (Marafiq)
  • Samsung C&T Corporation (South Korea)
  • Saudi Electricity Company (local)
  • Siemens Energy (Germany)
  • Sojitz Corporation (Japan)  
  • Summit Global Power
  • The Kansai Electric Power Company (Japan) 

The four power generation facilities will be developed using a build-own-operate model. 

SPPC indicated that the four power plants are envisaged to operate using natural gas combined-cycle technology with provision for carbon capture unit readiness.

Plans for PP15 were first announced in 2015. Originally intended to be developed on a build-operate-transfer basis, the initial plan entailed three phases, each with a design capacity of 1,800MW. 

SPPC's transaction advisory team for the Nemah 1 and 2 and Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany's Fichtner and US-headquartered Baker McKenzie. 

Awarded gas IPPs

SPPC awarded contracts to develop four gas-fired power generation IPP projects last year.

A consortium comprising Saudi Electricity Company and Saudi utility developer Acwa Power signed the 25-year power-purchase agreements with SPPC to develop and operate the Qassim 1 and Taiba 1 IPP projects on 13 November. Each plant has a capacity of 1,800MW.

The two projects are valued at SR14.6bn ($3.9bn).

China’s Sepco 3 will undertake the engineering, procurement and construction contract for the two projects, while US-based GE will supply the CCGT for the power plants. 

A team comprising the local Al Jomaih Energy & Water, France’s EDF and the local Buhur for Investment won the contract to develop the 1,800MW Taiba 2 IPP and 1,800MW Qassim 2 IPP schemes.

Each project will be developed on a BOO basis by the winning consortiums, which will be 100% owned by the successful bidders.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11576420/main.jpg
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Bidders compete for new Dubai Metro line project

    14 May 2026

     

    Register for MEED’s 14-day trial access 

    Dubai’s Roads & Transport Authority (RTA) has held a pre-bid meeting for the Dubai Metro Airport Express Line with consultants understood to be competing for work on the project.

    It is understood that the RTA has requested firms to form joint ventures for the project. The firms that attended the meeting include:

    • Aecom (US)
    • Arup (UK)
    • ARX (Switzerland)
    • AtkinsRealis (Canada)
    • DB (Germany)
    • Egis (France)
    • Jacobs (US)
    • Mott Macdonald (UK)
    • Parsons (US)
    • Sener (Spain)
    • Surbana Jurong (Singapore)
    • Systra (France)
    • WSP (Canada)

    The consultancy contract covers the study and design of the Airport Express Line, which will extend from the Al-Garhoud area of the city to Al-Maktoum International airport (DWC) in the Jebel Ali area. The proposed line will stretch about 55 kilometres (km) and include five stations, providing passengers with facilities such as remote airline check-in, baggage drop-off and security screening.

    Consultants have been allowed until June to submit their proposals.

    The new line will run from the Red Line metro station at Dubai International airport through Al-Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC) before continuing on to DWC.

    There will be two spur lines. The first will run from the new JVC station to the Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch out towards Business Bay, where another station will be built.

    The new line appears to follow a similar route to the Etihad Rail high-speed railway project, which is now under construction and due to be completed by 2030.

    Route 2020 extension

    The Airport Express Line scheme is the latest metro project to be tendered by the RTA this year. Tendering activity is already ongoing for the Route 2020 extension, which will start from the Expo 2020 metro station and connect to DWC’s West Terminal.

    In April, MEED exclusively reported that consultants had submitted bids for the project.

    The extension to the line will run for about 3km and will feature two stations.

    The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.

    The RTA awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain’s Acciona, Turkiye’s Gulermak and France’s Alstom in 2016.

    Gold Line

    Dubai’s plans for its metro network do not stop with connecting the extension of the Route 2020 metro line to DWC. There are long-term plans for further extensions.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, also known as Metro Line 4.

    The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.

    The existing network includes the Red and Green lines of the Dubai Metro and the Dubai Tram, which connects Al-Sufouh and Dubai Marina to the metro network. The last rail project to start operations in Dubai was the Red Line extension that opened for Expo 2020.

    There are also existing and planned rail lines connecting Dubai to other emirates that are being developed and operated by Abu Dhabi-based Etihad Rail. These include passenger and freight services, as well as a high-speed rail connection.

    Blue Line

    In December 2024, the RTA awarded a AED20.5bn main contract for the Dubai Metro Blue Line project to a consortium of Turkish firms Limak Holding and Mapa Group and the Hong Kong office of China Railway Rolling Stock Corporation.

    The Blue Line consists of 14 stations, including three interchange stations at Jaddaf, Rashidiya and International City 1, as well as a station in Dubai Creek Harbour.

    By 2040, the number of daily passengers on the Blue Line is projected to reach 320,000. It will be the first Dubai Metro line to cross Dubai Creek, doing so on a 1,300-metre viaduct.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16833450/main.jpg
    Colin Foreman
  • Aldar acquires Dubai Studio City development

    14 May 2026

    Abu Dhabi-based developer Aldar has acquired a residential and community retail development in Dubai Studio City from Dubai-based developer SRG for AED1.1bn ($300m).

    The deal is part of Aldar’s long-term strategy to build a high-quality, recurring-income portfolio and to scale its presence in the city.

    Scheduled for delivery in 2028, the project comprises six mid-rise buildings with 312 homes, including one-, two- and three-bedroom apartments and duplexes. It also includes a community mall with retail, leisure and food-and-beverage offerings, as well as a 16,000-square-metre park.

    “Dubai is a priority growth market for Aldar, and this acquisition reflects our belief in the city’s residential market and the central role that institutionally owned, professionally managed rental housing plays in meeting the needs of a growing population,” said Jassem Saleh Busaibe, CEO of Aldar Investment. 

    “Dubai Studio City’s established infrastructure, vibrant community and strong connectivity make it an excellent location for a high-quality, professionally managed living environment. This transaction is the latest step in a deliberate and broadening strategy to build a diversified portfolio of income-generating assets in Dubai, one that we expect to continue growing as the city attracts increasing global interest and talent,” he added. 

    The transaction expands Aldar’s activities in Dubai across a range of property types. Aldar Investment’s recurring-income portfolio in the emirate now includes residential, commercial, logistics and mixed-use assets. Key holdings include a mixed-use joint venture with Expo City Dubai, a signature office tower in Dubai International Financial Centre, a Grade A office building on Sheikh Zayed Road, and logistics facilities in National Industries Park and Dubai South.

    On the development front, Aldar’s partnership with Dubai Holding continues to gain traction, with three master-planned residential communities already launched and a pipeline exceeding 2.3 million sq m of new gross floor area. 

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16832033/main.jpg
    Colin Foreman
  • Algeria awards major gas project contract

    14 May 2026

     

    The Chinese-Algerian joint venture Groupement Sonatrach-Sinopec (GSS) has provisionally awarded a major contract to upgrade the gas lift compression unit at Algeria’s Zarzaitine field.

    The $238.8m contract has been awarded to a consortium of the Chinese companies Tianchen Engineering Corporation and Shaanxi Yanchang Petroleum.

    The client on the project is a partnership between Beijing-headquartered Sinopec and Algeria’s state-owned oil and gas company Sonatrach.

    The contract uses the engineering, procurement, construction and commissioning (EPCC) model and has a 45-month term.

    The gas lift unit was first installed in 1988. It processes and injects gas into the field to help boost oil production at the Zarzaitine oil field.

    Under the terms of the contract, the unit will be upgraded to boost its performance.

    Its functions include gas separation, filtration, compression and condensate recovery.

    The latest contract award comes at a time when Sonatrach is taking advantage of concerns about global gas and crude supplies to sign deals and push ahead with major upstream projects.

    In recent weeks, the country has launched an oil and gas licensing round, taken steps to boost crude production in the short term and awarded a $1.1bn oil and gas field development project.

    This comes as shipping remains disrupted through the Strait of Hormuz, a key global oil and gas supply route. The disruption began after the US and Israel attacked Iran on 28 February 2026, triggering a regional war.

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

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16822685/main.jpg
    Wil Crisp
  • Kuwait continues to deploy oil drilling rigs

    14 May 2026

    Kuwait is continuing to deploy oil drilling rigs despite the ongoing crisis disrupting shipping through the Strait of Hormuz, according to a statement from Kuwaiti drilling and oilfield services provider Action Energy Company (AEC).

    In a statement released on 13 May, the company’s chief executive, Ahmad Mohammad Al-Ajlan, said it had secured awards for an additional seven rigs announced in January 2026, before the US and Israel’s 28 February attack on Iran.

    He added that deployment of these rigs was “progressing in line with schedule”.

    The ongoing deployment of the rigs comes amid significant disruption to Kuwait’s oil and gas sector.

    Kuwait’s oil and gas sector has been severely impacted by the blockade of the Strait of Hormuz, through which all of its crude exports are normally shipped.

    The country recorded zero crude oil exports in April for the first time since the end of the Gulf War in 1991, according to shipping monitor TankerTrackers.com.

    The inability to export crude has quickly filled domestic storage capacity, forcing production cuts at the country’s largest oil fields.

    Rising revenues

    Despite the ongoing crisis, AEC has reported positive financial results for the first quarter of this year, which ended on 31 March.

    The company’s revenue grew by 69.2% year-on-year, primarily driven by the expansion of the operating rig fleet from 13 rigs in the first quarter of 2025 to 20 rigs in the first quarter of 2026, including the full-quarter contribution of 10 new rigs deployed during 2025.

    The company is benefitting from a substantial multi-year contracted backlog with the state-owned upstream operator, Kuwait Oil Company (KOC).

    Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, the chairman of AEC, said: “Despite regional disturbances during the period, AEC delivered performance in line with expectations, ensured uninterrupted support to KOC operations, and continued to operate with safety as a core value.”

    In January 2026, AEC announced two contract awards from KOC.

    The first contract, worth KD4.8m ($15.6m), covers two 750-horsepower (HP) rigs, which are expected to be deployed in the second half of the year.

    The second contract, worth KD62.1m ($201.5m), covers four 1,500 HP rigs and one 1,000 HP rig.

    These are expected to start operations from the fourth quarter of 2026 and the first quarter of 2027.

    Together, these awards bring the company’s rig fleet backlog to 27 rigs once fully mobilised, according to AEC.

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

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16822649/main5931.jpg
    Wil Crisp
  • Aramco aims to raise $10bn with real estate deal

    14 May 2026

    Saudi Aramco is considering plans to generate more than $10bn by leveraging its real estate assets, which include its headquarters and campus in the kingdom’s Eastern Province. The move could involve a sale-and-leaseback structure, which would provide the oil giant with a significant influx of capital while allowing it to retain use of the properties.

    According to Bloomberg, Aramco is working with advisers to facilitate the transaction, which is expected to attract interest from major infrastructure and real estate investment funds. The initiative follows an $11bn lease agreement signed last year with a group led by BlackRock for facilities supporting the Jafurah gas project.

    Aramco is also reportedly pursuing deals involving its gas-fired power plants, water infrastructure, and stakes in oil export and storage terminals.

    These efforts to unlock capital come as the firm supports the kingdom’s economic transformation under Vision 2030 amid rising costs and regional conflict.

    Aramco reported $12bn of capital expenditure in the first quarter of this year, which it said supports its growth objectives. It previously guided for capex of $50bn to $55bn for the full year.

    Aramco’s capex in Q1 2026 was down 4% from the same period last year. The company spent $13.37bn in Q4 2025 and $52.2bn for the full year.

    Offshore oil and gas projects are understood to have accounted for a significant share of Aramco’s first-quarter capex.

    The company reported a sharp rise in profit in Q1 2026, beating analyst expectations as higher oil prices and increased crude sales offset geopolitical disruptions linked to shipping constraints in the Strait of Hormuz.

    Aramco’s adjusted net income rose nearly 26% to $33.6bn in Q1 2026, from $26.6bn a year earlier.

    Net income rose more than 25% year-on-year to $32.04bn, compared with $25.51bn in Q1 2025, driven by higher crude oil prices and increased sales volumes.

    Revenue increased 7% to $115.49bn, supported by higher prices for crude oil, refined products and chemicals, as well as higher sales volumes of crude and chemical products.

    On a quarterly basis, net income jumped 72.9% from Q4 2025, rising from $18.53bn to $32.04bn, helped by stronger margins and lower operating costs despite higher taxes and zakat payments.

    Cash flow from operating activities totalled $30.7bn, while free cash flow came in at $18.6bn, down slightly from $19.2bn a year earlier. This reflected a strategic $15.8bn increase in working capital aimed at ensuring business continuity.

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

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16821588/main.gif
    Colin Foreman