Egypt’s Orascom Joins Spanish Group to Build 3-GW Gas-Fired Plant in Saudi Arabia

By Magazine Team Last updated Mar 27, 2025 299 0

An Egypt-based construction group has partnered with a Spanish energy infrastructure company to develop a 3-GW combined-cycle natural gas power plant in Saudi Arabia.

Orascom Construction, based in Cairo, announced that its 50-50 joint venture with Spain’s Técnicas Reunidas secured a $2.6 billion contract to build the Qurayyah IPP Expansion Project in Saudi Arabia’s Eastern Province. The engineering, procurement, and construction (EPC) contract was signed with Hajr Two Electricity Co., a consortium comprising ACWA Power, Saudi Electricity Co., and Haji Abdullah Alireza & Co. Ltd.

The power plant will be equipped with carbon capture technology and will also include the construction of a 380-kW substation. In February, Saudi Electricity Co. announced it had signed a power purchase agreement with the Saudi Power Procurement Co. for the electricity generated from the expansion project.

The new facility will boost power supply in the region, which is already home to the original Qurayyah IPP power station—a nearly 4-GW gas-fired plant in operation since 2015.

Osama Bishai, CEO of Orascom Construction, said, “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.”

Increasing Builds of Gas-Fired Power Stations

Qurayyah is one of several projects aimed at expanding Saudi Arabia’s natural gas power generation as state-owned Aramco increases production. These initiatives are backed by international energy companies and engineering firms.

Earlier in March, Siemens Energy secured a $1.6 billion project with Harbin Electric International as the EPC contractor. The deal includes providing technology for the Rumah 2 and Nairyah 2 gas-fired power plants in Saudi Arabia’s western and central regions. Together, the plants will add 3.6 GW of generation capacity to the Saudi grid. Both facilities will initially operate in simple-cycle mode, with plans to convert to combined-cycle operation by 2028.

Orascom Construction PLC is a leading global engineering and construction contractor with operations across the Middle East, Africa, and the U.S., specializing in infrastructure, industrial, and commercial projects. The company has power projects either operational or under construction in the Middle East and Africa, totaling over 30 GW of generation capacity. This includes two 4.8-GW combined-cycle gas-fired power plants in Egypt.

Source :Zawya