Qurayyah IPP expansion project is moving through construction after securing financing and a major engineering, procurement, and construction contract. The 3,010MW development will strengthen Saudi Arabia’s electricity generation capacity in the Eastern Province. Furthermore, the project combines high-efficiency gas generation with infrastructure prepared for future carbon capture technology.
The development carries a total project value of SAR 13.4 billion, equivalent to approximately $3.6 billion. However, the EPC contract separately exceeds $2.6 billion.
This distinction remains important because the $2.6 billion figure covers construction delivery, rather than the entire project investment. The wider project value reflects the 25-year power purchase agreement and associated development commitments.
Qurayyah IPP expansion project enters active construction
The Qurayyah IPP expansion project has progressed beyond development following financial close and EPC mobilisation. A 50:50 joint venture between Orascom Construction and Técnicas Reunidas holds the EPC contract.
The contractors signed the contract with Hajr Two Electricity Company, which leads the project development consortium. The joint venture has also received a Limited Notice to Proceed.
Construction will deliver a 3GW-class combined-cycle gas turbine power plant at the existing Qurayyah complex. ACWA Power identifies the plant capacity as 3,010MW.
The development also includes a 380kV electrical substation for grid integration. Moreover, the facility will incorporate readiness for future carbon capture units.
The EPC contract carries a value exceeding $2.6 billion. Orascom Construction and Técnicas Reunidas will execute engineering, procurement, and construction under their joint venture.
Qurayyah IPP expansion project secures major financing
The project reached financial close in October 2025 after securing SAR 10.8 billion in financing. A consortium of local, regional, and international lenders arranged the facility.
The financing consortium included Saudi National Bank, Saudi Awwal Bank, Banque Saudi Fransi, and Saudi Investment Bank. HSBC, Standard Chartered, Sumitomo Mitsui Trust Bank, and other lenders also participated.
The financing supports the project’s development and operations under a 28-year facility. Meanwhile, the PPA carries a 25-year term from the plant’s expected commercial operation date.
The project’s financing momentum also connects with Saudi Arabia’s wider electricity infrastructure investment. In August 24th 2026, Saudi Energy signed a financing agreement with Bpifrance worth up to $3 billion.
The agreement supports power-grid expansion, procurement, and strategic electricity infrastructure projects across the Kingdom. It therefore provides wider financing context for Saudi Arabia’s expanding generation and transmission pipeline.
Qurayyah IPP expansion project strengthens grid capacity
The Qurayyah IPP expansion project will increase reliable generation capacity as Saudi Arabia’s electricity requirements continue rising. The plant will use natural gas through combined-cycle technology to improve generation efficiency.
The new substation will support electricity transmission from the plant into the national network. Therefore, the project combines generation infrastructure with essential grid connection works.
The development also supports Saudi Arabia’s transition away from oil-based electricity generation. Its carbon-capture readiness provides flexibility for future emissions-management infrastructure.
Additionally, the expansion strengthens the Eastern Province’s energy infrastructure. The region contains major industrial and commercial activities that require dependable electricity supplies.
The existing Qurayyah complex already ranks among Saudi Arabia’s major power-generation assets. The expansion will further increase its importance within the Kingdom’s electricity system.
With financial close completed and EPC works underway, the development has entered a significant construction phase. Commercial operations are expected to follow the project’s scheduled development programme.
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
Name: Qurayyah IPP Expansion Project.
Location: Eastern Province, Saudi Arabia.
Value: SAR 13.4 billion, approximately $3.6 billion.
EPC contract value: More than $2.6 billion.
Capacity: 3,010MW.
Technology: Combined-cycle gas turbine.
Fuel: Natural gas.
Project model: Independent Power Producer.
PPA duration: 25 years.
EPC duration: Approximately 44 months.
Grid infrastructure: 380kV electrical substation.
Carbon technology: Carbon capture readiness.
Financing: SAR 10.8 billion facility.
Financial close: October 2025.
Construction status: EPC execution.
Offtaker: Saudi Power Procurement Company.
Strategic objective: Expand reliable electricity generation and strengthen grid capacity.
Project team
Project Company: Hajr Two Electricity Company.
Developer: ACWA Power.
Project partner:
- Saudi Electricity Company.
- Haji Abdullah Alireza & Co. Ltd.
EPC contractor:
- Orascom Construction.
- Técnicas Reunidas.
EPC structure: Orascom Construction–Técnicas Reunidas 50:50 joint venture.
Technology supplier: GE Vernova.
Power offtaker: Saudi Power Procurement Company.
Financing consortium: Local, regional, and international lenders.
Grid infrastructure partner: Saudi Electricity Company.
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