Home » Energy » natural gas » Orascom, Técnicas JV bags construction contract for Saudi’s 3GW QIPP Power Plant expansion

Orascom, Técnicas JV bags construction contract for Saudi’s 3GW QIPP Power Plant expansion

Home » Energy » natural gas » Orascom, Técnicas JV bags construction contract for Saudi’s 3GW QIPP Power Plant expansion

Orascom Construction and Técnicas Reunidas JV has signed an Engineering, Procurement, and Construction (EPC) contract for the expansion of the 3GW Qurayyah IPP (QIPP) Power Plant in Saudi Arabia. Qurayyah’s power plant features a combined cycle gas-fired system. The plant will soon be connected to a carbon capture facility and a 380 kV electrical substation. The awarded EPC contract cost for Saudi’s QIPP Power Plant expansion stands at more than $2.6 billion.

Project factsheet

Location: Qurayyah, Saudi Arabia

Client: Hajr Two Electricity Company

Operator: NOMAC

EPC contractor: Orascom Construction PLC, Técnicas Reunidas JV

Contract cost: USD 2.6 billion +

Contract scope: Combined cycle gas-fired power plant expansion

Expansion features: Power substation, and carbon capture infrastructure

Saudi’s QIPP project

The construction contract for the 3GW QIPP Power Plant expansion project in Saudi Arabia was offered by a Saudi duo-led consortium. The Hajr Two Electricity Company consortium has ACWA Power and Haji Abdullah Alireza & Co at its table.

Handing close to 80GW of power, ACWA Power owns and operates 101 energy assets in 14 countries. It has also made over $107 billion in investments in the energy sector globally. Close to half of the electricity company’s assets are in the renewable energy sector. Additionally, Técnicas Reunidas focuses on sustainable industrial projects, mainly invested in the design and management of execution of these facilities.

Now investing in the natural gas and fuel-oil ran combined cycle facility, the JV will add to the portfolio a 380 kV power station substation. This will connect to the Kingdom’s electricity distribution system. Also in plans is the building of a carbon capture unit at the facility. Or at least, getting the required infrastructure system ready for the sustainability investment.

Where does the construction of Saudi’s QIPP expansion project currently lie?

Currently, the Limited Notice to Proceed (LNP) has already been given to the JV handling the expansion of QIPP’s 3GW power plant project.

Orascom well received the contract; adding to its more than 30 GW energy projects portfolio. Having handled two 4.8 GW combined cycle gas-fired power plants in Egypt, the construction group does not seem shy to leave its mark in more of the Arab countries. “It also builds on our success in the power sector most recently in Egypt”, said Osama Bishai, the CEO of Orascom Construction. ” […] 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.”, Bishai added in an official statement announcing the contract award.

Also in most recent news surrounding the QIPP, the Saudi Electricity Company signed a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC). A move set to make the expansion of the largest independent power generation project in the world, more likely.

Also read: US$3.6 Billion Expansion of QIPP: The largest independent power generation project in the world, gets more likely

The latest QIPP contract announcement certainly brings one of the most efficient power station of its kind in the Kingdom, and one of the largest in the world, closer to reality.

Also read: US Exim Bank Approves $4.7 Billion for Mozambique LNG Project

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