Saudi Arabia has awarded a $2.6 billion contract to a Spanish-Egyptian joint venture to construct a large-scale 3-gigawatt (GW) combined-cycle gas-fired power plant in the Kingdom’s Eastern Province.
Egypt-based and NASDAQ-listed Orascom Construction announced that its 50-50 joint venture with Spanish energy infrastructure firm Técnicas Reunidas has signed an Engineering, Procurement, and Construction (EPC) contract for the Qurayyah IPP Expansion Project.
The contract was signed with Hajr Two Electricity Company, a consortium that includes ACWA Power, Saudi Electricity Company, and Haji Abdullah Alireza & Co. Ltd. Orascom Construction and Técnicas Reunidas have already received a Limited Notice to Proceed with the project.
The Qurayyah expansion will incorporate carbon capture readiness and feature a 380 kV electrical substation, aligning with Saudi Arabia’s energy transition goals.
Osama Bishai, CEO of Orascom Construction, stated:
“This contract builds on our success in the power sector, most recently in Egypt, and we look forward to making a similar significant impact in Saudi Arabia.”
Saudi Arabia is ramping up natural gas-fired power generation as state oil giant Aramco increases domestic gas production.
Recent Energy Investments in Saudi Arabia
The Kingdom has recently awarded multiple contracts for power generation projects:
- Siemens Energy secured a $1.6 billion contract in March to supply key technologies for the Rumah 2 and Nairyah 2 gas-fired power plants.
- Harbin Electric International is the EPC contractor for these plants, which will add 3.6 GW to the national grid—enough to supply 1.5 million homes.
- Both plants will integrate with the grid in simple cycle mode by 2027, before transitioning to combined-cycle operation in 2028.
Saudi Arabia’s continued investments in power infrastructure reflect its commitment to meeting growing energy demand while preparing for future carbon capture and energy transition initiatives.