Argan’s subsidiary Gemma Power Systems has been notified to proceed with its previously announced engineering, procurement and construction (EPC) services contract for a 1.2GW natural gas-fired plant in Sandow Lakes, Lee County, in the US state of Texas.
Gemma signed the EPC contract with Sandow Lakes Energy Company (SLEC) in February 2025.
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The plant will power 800,000 homes upon completion.
Construction of the project, now part of Argan’s backlog, will commence in summer 2025 with an expected completion date in 2028.
The initiative follows SLEC’s announcement in March 2025 that it was to construct the power plant, which will be developed and owned by a SLEC subsidiary and will operate within the Electric Reliability Council of Texas.
Gemma CEO Charles E Collins IV stated: “We’re thrilled to move forward with SLEC on this major power project. Their strong development efforts set the stage for success, and we look forward to working together. Expanding power infrastructure is essential to meeting rising energy demands, and our team is dedicated to delivering exceptional results.”
The combined cycle power station will feature two Siemens Energy SGT6-9000HL gas turbines, claimed to provide high power output and fuel efficiency.
These turbines can operate on hydrogen with only minor modifications, aligning with decarbonisation goals.
The combined cycle power station will be located close to the Matterhorn natural gas pipeline.
SLEC, formed to develop and invest in energy projects in Texas, aims to meet the state’s escalating electricity demand.
Gemma is an EPC services provider with experience comprising 15GW of installed capacity across natural gas power generating plants, biomass-fired power plants, solar facilities, wind farms, biofuel plants and other environmental facilities.
Argan’s primary business focus is on providing construction and related services to the power industry.
