Planned to be built on a greenfield site in a rural area near Swift Current, Saskatchewan, the new natural gas-fired power facility is expected to help meet growing power demand in the region.
Financial terms of the contract were not disclosed.
SaskPower, a provincial Crown Corporation, has issued a formal notice in July to proceed with the project, which is now currently under engineering design phase.
Construction of project is subject to environmental approval and is planned to commence as early as late 2016. The facility is scheduled to be commissioned in late 2019.
SaskPower president and CEO Mike Marsh said: "Chinook Power Station is going to play a major part in helping SaskPower continue to meet a growing demand for power in Saskatchewan."
The combined-cycle facility will comprise a Siemens F-Class gas turbine, a heat recovery steam generator (HRSG) and a Siemens steam turbine.
The turbines and generators of the plant are expected to boost power output and maximize energy efficiency while reducing CO2 emissions.
The project is expected to create up to 500 jobs during construction phase and a further 25 jobs upon commissioning the plant.
TransGas will supply natural gas, via a large-capacity pipeline, to fuel the power plant under a long-term contract.
