Jafurah power plant has reached another major milestone after Korea Electric Power Corporation (KEPCO) secured a contract worth approximately $1.4 billion for Phase 2 of the development. The project will provide critical power and steam infrastructure for Saudi Aramco’s expanding Jafurah gas field. Moreover, the award strengthens Saudi Arabia’s efforts to increase natural gas production while supporting large-scale industrial growth. The development forms part of a broader infrastructure program designed to unlock the full potential of the Kingdom’s largest unconventional gas resource.
KEPCO announced that it signed power and steam sales agreements with Saudi Aramco while also finalizing an engineering, procurement and construction arrangement with Doosan Enerbility. Consequently, the project has moved into the execution stage, with construction activities expected to continue until June 2029.
The contract builds on KEPCO’s involvement in the Jafurah development. The company secured the Phase 1 cogeneration project in 2022 and expects to complete that facility during 2026. Therefore, the latest award extends the company’s role in one of Saudi Arabia’s most significant energy infrastructure programs.
Located about 400 kilometers east of Riyadh, the Jafurah gas field remains central to the Kingdom’s energy diversification plans. Saudi Aramco continues to invest heavily in supporting infrastructure as it seeks to expand domestic gas production and reduce reliance on liquid fuels.
Jafurah Power Plant to Support Expanding Gas Operations
The Phase 2 facility will generate 331 MW of electricity. In addition, it will produce approximately 465 tonnes of steam per hour for industrial use. These outputs will support upstream and processing activities across the growing Jafurah gas development.
Saudi Aramco considers the Jafurah field a strategic asset because of its vast unconventional gas reserves. As a result, the company continues to develop processing facilities, pipelines, utility networks and power infrastructure throughout the region.
The new power plant will operate through a special purpose company jointly established by KEPCO and Saudi Aramco. Meanwhile, Doosan Enerbility will deliver engineering, procurement, construction and commissioning services under a comprehensive EPC contract.
Construction teams are expected to begin mobilization activities soon. Thereafter, work will progress through design, equipment installation, testing and final commissioning phases. The completed facility will then supply power and steam to Saudi Aramco under a 17-year operating agreement.
The project also supports Saudi Arabia’s Vision 2030 objectives. Reliable utility infrastructure remains essential for industrial expansion and economic diversification. Therefore, the development will contribute to both energy security and long-term economic growth.
Jafurah Power Plant Strengthens Saudi-Korean Construction Partnership
The latest contract highlights growing cooperation between Saudi Arabia and South Korea in the energy construction sector. Over recent years, South Korean firms have secured several major contracts across the Kingdom’s power, renewable energy and industrial markets.
Doosan Enerbility will serve as the EPC contractor for the project. Accordingly, the company will oversee design, procurement, construction and commissioning activities. Its subsidiary, Doosan Skoda Power, will supply the steam turbine package for the facility.
Industry observers believe the project will create additional opportunities for South Korean manufacturers and technology providers. Furthermore, it demonstrates the competitiveness of Korean engineering companies in global infrastructure markets.
KEPCO expects the project to generate approximately $1.4 billion in revenue during the 17-year operating period. Consequently, the company views the development as a strategically important addition to its international portfolio.
The Jafurah development continues to attract significant investment as Saudi Arabia advances its gas production ambitions. Utility projects such as the Jafurah power plant will play a vital role in supporting future output growth. As construction advances toward the 2029 completion target, the project is expected to become a key component of the Kingdom’s evolving energy infrastructure network.
Jafurah Power Plant Underscores Saudi Arabia’s Infrastructure Expansion
Saudi Arabia continues to prioritize investments that support large-scale energy developments. Consequently, utility facilities remain crucial to the success of projects such as Jafurah.
The Phase 2 power plant will provide the electricity and steam required for sustained gas production. Moreover, it will strengthen infrastructure resilience across the broader Jafurah development area. With construction now moving forward, the project marks another significant step in Saudi Arabia’s drive to expand domestic gas capacity and support long-term industrial growth.
The latest contract award also reflects the growing pipeline of large-scale gas-fired generation projects across Saudi Arabia. This trend is evident in the previously announced Qurayyah IPP expansion project, where an Orascom Construction and Técnicas Reunidas joint venture secured a contract exceeding $2.6 billion to expand the 3 GW combined-cycle facility in the Kingdom’s Eastern Province. The development, which includes carbon capture readiness and a 380 kV substation, highlights the continued investment in utility infrastructure needed to support Saudi Arabia’s industrial and energy growth ambitions.
Also read: Aramco Starts Production at $100B Jafurah Gas Giant, Saudi Arabia
Project Fact Sheet
Project Name: Jafurah Phase 2 Combined Cycle Power Plant
Location: Jafurah Gas Field, Eastern Province, Saudi Arabia
Project Value: $1.4 billion
Project Type: Combined Cycle Cogeneration Power Plant
Power Capacity: 331 MW
Steam Capacity: 465 tonnes per hour
Client: Saudi Aramco
Developer: KEPCO–Saudi Aramco Special Purpose Company
Contract Award Date: June 2026
Construction Completion Target: June 2029
Operating Agreement Period: 17 years
Primary Purpose: Supply electricity and steam for Jafurah gas operations
Strategic Importance: Supports Saudi Arabia’s largest unconventional gas field
Turbine Supplier: Doosan Skoda Power
Delivery Model: Engineering, Procurement and Construction (EPC)
Project Team
Project Owner: Saudi Aramco
Sponsor: Saudi Aramco
Project Developer: Korea Electric Power Corporation (KEPCO)
Project Company: KEPCO–Saudi Aramco Special Purpose Company
Power and Steam Offtaker: Saudi Aramco
EPC Contractor: Doosan Enerbility
Engineering Contractor: Doosan Enerbility
Procurement Contractor: Doosan Enerbility
Construction Contractor: Doosan Enerbility
Commissioning Contractor: Doosan Enerbility
Steam Turbine Supplier: Doosan Skoda Power
Plant Operator: KEPCO
Long-Term Utility Customer: Saudi Aramco
Host Country: Saudi Arabia
End User: Jafurah Gas Field Operations
Financial Support Partner: Export-Import Bank of Korea
Technology Partner: Doosan Skoda Power
Energy Infrastructure Stakeholder: Saudi Aramco Upstream Division
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