A 50-50 joint venture of Orascom Construction and Técnicas Reunidas has secured an Engineering, Procurement and Construction (EPC) contract for the expansion of the Qurayyah Independent Power Producer (IPP) plant. The contract is valued more than $2.6bn.
The project, situated in Saudi Arabia‘s Eastern Province, will add a significant 3GW of combined cycle gas-fired power to the nation’s grid. Additionally, the expansion includes provisions for future carbon capture technology and the integration of a 380kV electrical substation.
The EPC agreement for the Qurayyah IPP Expansion Project was finalised with Hajr Two Electricity Company, a consortium that includes ACWA Power, Saudi Electricity Company, and Haji Abdullah Alireza & Co. Ltd. The JV has already received the Limited Notice to Proceed, signalling the commencement of the project’s initial phase.
The agreement further strengthens Orascom Construction presence in the region. The firm has a broad range of projects, both finished and in progress, throughout the Middle East and Africa, collectively surpassing 30 GW of power generation capacity. Notably, this portfolio features two substantial 4.8 GW combined cycle gas-fired power plants in Egypt.
Orascom Construction CEO Osama Bishai said: “We continue to deliver on our geographic diversification strategy with a particular focus on key sectors such as power and water. This project exemplifies the type of opportunities that we actively pursue where we can leverage our expertise to deliver high-quality projects and maximum value.
“It also builds on our success in the power sector most recently in Egypt, 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.”
