The Qurayyah IPP expansion project has progressed into active execution following the award of a major EPC contract to a joint venture between Orascom Construction and Técnicas Reunidas. The development involves a 3GW combined-cycle gas-fired power plant in Saudi Arabia’s Eastern Province. Moreover, the project strengthens national electricity generation capacity while supporting industrial growth and energy diversification goals. As of 2026, construction activities continue under previously awarded notices to proceed, with engineering and procurement works advancing across key packages.
The project remains a central component of Saudi Arabia’s broader strategy to expand reliable gas-fired generation infrastructure. In addition, it supports the Kingdom’s objective of increasing efficiency in power production while integrating future-ready carbon capture infrastructure. Consequently, the expansion continues to attract attention as one of the region’s largest independent power developments currently under construction.
Qurayyah IPP Expansion Project Construction Status Update (2026)
The Qurayyah IPP expansion project is currently in the early-to-mid execution phase. Engineering works are ongoing, and procurement of long-lead equipment continues under the EPC framework. Meanwhile, site preparation and enabling works have progressed following the issuance of limited notices to proceed in earlier phases.
Additionally, the project continues to align with long-term power purchase agreements secured with Saudi offtakers. These agreements ensure financial stability while supporting uninterrupted development progress. Therefore, construction momentum remains steady despite the project’s scale and technical complexity.
The joint venture is also coordinating with major equipment suppliers to advance turbine and system integration works. As a result, key generation components are being prepared for phased installation as civil works advance on site.
Qurayyah IPP Expansion Project Strengthens Saudi Power Infrastructure
The Qurayyah IPP expansion project continues to reinforce Saudi Arabia’s long-term energy infrastructure roadmap. Furthermore, the facility is designed as a high-efficiency combined-cycle plant, improving thermal performance and reducing emissions intensity compared to older generation assets.
The project also integrates readiness for carbon capture systems. This design feature ensures future compatibility with decarbonization technologies as Saudi Arabia transitions toward lower-carbon energy systems.
In addition, the 3GW capacity will significantly enhance grid reliability in the Eastern Province. The plant will support industrial zones, petrochemical facilities, and growing urban electricity demand. Consequently, it remains a strategically important infrastructure investment for the Kingdom’s power sector.
Qurayyah IPP Expansion Project and Related Saudi Energy Developments
The project forms part of a wider wave of large-scale gas and power infrastructure investments across Saudi Arabia. Notably, $1.4bn Jafurah Power Plant in Riyadh aimed at expanding generation capacity and strengthening grid stability.
Moreover, similar EPC awards across the Kingdom highlight continued investor confidence in Saudi Arabia’s power sector. The Qurayyah expansion therefore sits within a broader pipeline of combined-cycle projects that are reshaping the country’s energy landscape.
The project also shares synergies with regional infrastructure programs, including grid expansion, substation upgrades, and integrated fuel supply systems. As a result, it contributes to a more interconnected and resilient national energy network.
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.
Handling 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.
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.
Project Fact Sheet
Project Name: Qurayyah IPP Expansion Project
Location: Eastern Province, Saudi Arabia
Capacity: 3 GW Combined Cycle Gas-Fired Power Plant
Technology: Combined Cycle Gas Turbine (CCGT)
Client: Hajr Two Electricity Company (ACWA Power consortium)
EPC Contractor: Orascom Construction – Técnicas Reunidas JV
Contract Value: Over $2.6 billion
Fuel Type: Natural Gas
Key Feature: Carbon capture readiness
Electrical Infrastructure: 380 kV substation integration
Construction Status (2026): Execution phase with ongoing EPC works
Project Scope: Power generation and grid integration infrastructure
Offtaker: Saudi Power Procurement Company (SPPC)
Project Team
Project Developer: Hajr Two Electricity Company
Main Shareholders: ACWA Power, Saudi Electricity Company, Haji Abdullah Alireza & Co.
EPC Contractor: Orascom Construction – Técnicas Reunidas Joint Venture
Engineering Partner: Orascom Construction / Técnicas Reunidas
Procurement Contractor: Orascom Construction / Técnicas Reunidas
Construction Contractor: Orascom Construction / Técnicas Reunidas
Technology Supplier: GE Vernova (gas turbines package)
Grid Integration Partner: Saudi Electricity Company (SEC)
Power Offtaker: Saudi Power Procurement Company (SPPC)
Regulatory Authority: Saudi Electricity Regulatory Framework
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