The Qurayyah IPP expansion project continues to progress in 2026 as Saudi Arabia advances one of its largest independent power generation developments. The project, valued at about $3.6bn, focuses on expanding the existing Qurayyah Independent Power Plant in the Eastern Province through a new combined-cycle gas turbine facility. Moreover, the expansion strengthens national grid capacity while supporting rising electricity demand driven by industrial growth and urbanization.
Qurayyah IPP expansion project status update (2026)
The Qurayyah IPP expansion project has reached key development milestones, with financial close achieved and major contracts already awarded. Engineering, procurement, and construction (EPC) works are underway following the award of a major EPC contract to a joint venture between Orascom Construction and Técnicas Reunidas.
Additionally, the project has moved into early construction phases after receiving a limited notice to proceed. Meanwhile, advanced gas turbine technology procurement is progressing, including orders for high-efficiency H-class turbines to enhance plant performance.
The expansion will add approximately 3,000 MW of capacity through a combined-cycle gas-fired configuration. Furthermore, the project incorporates readiness for carbon capture systems, aligning with Saudi Arabia’s decarbonization strategy.
As of 2026, site preparation, early civil works, and equipment manufacturing are advancing. Therefore, the project is transitioning from planning into full-scale construction execution.
Construction scope and project overview
The Qurayyah IPP expansion project involves the development of a large-scale combined-cycle gas turbine power plant integrated within the existing Qurayyah complex. The facility will include multiple gas turbines, heat recovery steam generators, and steam turbines to maximize efficiency.
In addition, the project includes the construction of associated infrastructure such as substations and grid connections. These components will ensure stable electricity transmission across the national grid. Consequently, the expansion enhances both generation and transmission capacity.
Importantly, the Qurayyah complex is already among the largest power plants globally, with an existing capacity of nearly 4,000 MW. Thus, the expansion further consolidates its position as a critical energy hub in Saudi Arabia.
Meanwhile, the Qurayyah IPP expansion project aligns closely with other major developments such as the Rabigh 2 IPP expansion. The Rabigh 2 project recently secured a $3 billion power purchase agreement to deliver 2,313.5 MW of additional capacity using similar combined-cycle technology.
Together, both projects demonstrate Saudi Arabia’s strategy to expand high-efficiency gas-fired generation while integrating future carbon capture solutions. They also support Vision 2030 targets for energy diversification and reliability.
Expansion of the largest independent power generation project in the world
The SAR13.4 billion expansion of the largest independent power generation project in the world will majorly involve the construction of a Combined Cycle Gas Turbine (CCGT) power plant. The plant will have a total capacity of 3,010 MW. Also included in the plan is the development of a carbon capture unit. A 380 kV substation has also been hinted of.
Saudi’s Ministry of Energy will oversee the QIPP expansion project. Once complete, the power plant will further boost the Kingdom’s electricity production capacity. Also as an aim is the enhancement of the plant’s operational efficiency.
Overview of the QIPP and it’s expansion
The QIPP was constructed in three phases across a one year time-frame. Located in Qurayyah on the Saudi Arabian eastern coast, the QIPP generates up to 3,927 MW of electricity. This is sold to Saudi Electricity Company, and will be so for a while as the lease PPA indicated 20 years of supply.
The largest independent power generation project in the world features a highly thermal efficient energy-producing unit. The combined-cycle gas-fired power plant was also designed with a Turbine Inlet Cooling (TIC) and Thermal Energy Storage (TES) which commenced operation in 2014. It runs on both natural gas and diesel, with priority anchored to the former.
According to official statement, once QIPP realizes the expansion project, it will mark an important step in the shift to more “sustainable alternatives” from “oil-based power generation”. The expansion project will also help in the long-term efforts to realize Saudi Arabia’s vision 2030 objectives.
Project Fact Sheet
Project Name: Qurayyah Independent Power Plant (QIPP) Expansion
Location: Eastern Province, Saudi Arabia (near Dammam)
Project Value: Approx. $3.6 billion
Project Type: Combined-Cycle Gas Turbine (CCGT) Power Plant Expansion
Capacity: ~3,000–3,010 MW
Contract Structure:
- Independent Power Producer (IPP) model
- Long-term Power Purchase Agreement (PPA)
Scope of Works:
- Development of new CCGT power units
- Installation of gas turbines and steam turbines
- Construction of heat recovery steam generators
- Development of 380kV substation and grid infrastructure
- Integration of carbon capture readiness
Status (2026):
- Financial close achieved
- EPC contract awarded
- Early construction and procurement underway
Key Features:
- High-efficiency gas-fired technology
- Carbon capture readiness
- Grid stability enhancement
Project Team
Project Company / Developer: Hajr Two Electricity Company
Shareholders:
Offtaker: Saudi Power Procurement Company (SPPC)
EPC Contractors:
- Orascom Construction
- Técnicas Reunidas
Technology Supplier: GE Vernova (gas turbines)
Financial Institutions: International and regional lenders (post-financial close)
Operations & Maintenance: Expected under NOMAC or affiliated operators
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