Engie wins contract for $1.2bn Saudi power project


French power utility Engie has won an order and closed financing for the green-field Fadhili independent power project (IPP) in Saudi Arabia.

Expected to be most efficient cogeneration plant in the country, the project will feature a combined cycled gas power plant with a capacity of 1,507MW.

It will also involve the construction of a 380kV substation to be transferred to Saudi Electricity Company (SEC) in 2018 for ownership, operation and maintenance.

The Fadhili plant, to be located at 50km northwest of the Jubail Industrial City [pictured], is expected to entail an investment of $1.2bn.

Engie will collaborate with South Korean Doosan Heavy Industries & Construction to provide engineering, procurement and construction services, and with Siemens for the supply of gas turbines.

Upon completion, the project will generate the equivalent of the electricity consumption of 1.4M people. It will also produce 1,447t per hour of steam and 768.8t per hour of feed water.

The power generated by the plant will be sold to SEC, while the steam and feed water will be sold to Saudi Aramco under 20-year purchase agreements.

Engie’s CEO Isabelle Kocher said: “Being awarded the Fadhili project reaffirms Engie’s leading position as independent power producer in the Middle East. We are also proud of the continued trust of Saudi Electricity Company and Saudi Aramco, our long-term partners in Saudi Arabia.

“The Fadhili project is in line with our strategy that aims at concentrating on low CO2 activities via renewable energies and gas for power generation. It also demonstrates our commitment to meet the exacting standards of performance expected by our customers.”

The plant is set to begin commercial operations at the end of 2019.

* Data provided by Timetric's Construction Intelligence Center.

* Image credit: Gimas / Shutterstock.

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