Orascom Construction, in an equal joint venture with Técnicas Reunidas, has signed a $2.6bn engineering, procurement and construction (EPC) contract for the 3GW Qurayyah IPP expansion project in Saudi Arabia’s Eastern Province.
The project involves a combined cycle gas-fired power plant, featuring readiness for carbon capture and a 380kV electrical substation.
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The EPC contract was signed with the Hajr Two Electricity Company, a consortium including ACWA Power, the Saudi Electricity Company and Haji Abdullah Alireza & Co.
Orascom Construction and Técnicas Reunidas have already received limited notice to proceed.
Orascom Construction CEO Osama Bishai stated: “We continue to deliver on our geographic diversification strategy with a particular focus on key sectors such as power and water. This project exemplifies the type of opportunities that we actively pursue where we can leverage our expertise to deliver high-quality projects and maximum value.
“It also 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. We are also pleased to partner with Técnicas Reunidas on this large-scale project and to extend our partnership in Saudi Arabia and the region.”
Orascom Construction has a history of projects in the Middle East and Africa with a total capacity of more than 30GW. This includes two 4.8GW combined cycle gas-fired power plants in Egypt.
In a related development, Siemens Energy has secured a $1.6bn project to provide technologies for the Rumah 2 and Nairyah 2 gas-powered power stations in Saudi Arabia.
These plants, located in the western and central regions of the country, will contribute 3.6GW to the national grid, supplying power to 1.5 million homes.
