In a bold move that underscores the shifting dynamics of the global energy landscape, Egypt-based Orascom Construction has joined forces with Spain’s Técnicas Reunidas to construct a monumental 3-GW combined-cycle natural gas-fired power plant in Saudi Arabia. The $2.6-billion Qurayyah IPP Expansion Project, announced on March 24, is set to significantly bolster the Eastern Province’s power generation capabilities, with a particular focus on integrating cutting-edge carbon capture technology.
The project, awarded to the 50-50 joint venture by Hajr Two Electricity Co., a consortium comprising ACWA Power, Saudi Electricity Co., and Haji Abdullah Alireza & Co. Ltd., is more than just a power plant. It’s a testament to the evolving energy strategies of the Middle East, where natural gas is increasingly taking center stage. The inclusion of a 380-kV substation further emphasizes the project’s role in enhancing the region’s electrical infrastructure.
Osama Bishai, CEO of Orascom Construction, highlighted the strategic significance of the project, stating, “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.” Bishai’s comments underscore Orascom’s ambition to replicate its success in Egypt, where it has completed two 4.8-GW combined-cycle gas-fired facilities, in the Saudi market.
The Qurayyah IPP Expansion Project is part of a broader trend in Saudi Arabia, where several gas-fired power stations are in the pipeline. This trend is being driven by Saudi Arabia’s state-owned oil and gas company, Aramco, which is ramping up natural gas production. International energy groups and engineering firms are playing a crucial role in these projects, with Siemens Energy recently securing a $1.6-billion deal to supply technologies for the Rumah 2 and Nairyah 2 gas-fired power plants.
The Rumah 2 and Nairyah 2 projects, with a combined capacity of 3.6 GW, are expected to initially operate in simple-cycle mode before transitioning to full combined-cycle operation by 2028. These projects, along with the Qurayyah IPP Expansion Project, are set to significantly increase Saudi Arabia’s power generation capacity, further diversifying its energy mix.
The Qurayyah IPP Expansion Project is not just about increasing power generation; it’s about doing so sustainably. The inclusion of carbon capture technology is a significant step towards mitigating the environmental impact of natural gas-fired power plants. This move is likely to spark debate and challenge norms in the sector, as other countries and companies grapple with the need to balance energy demands with environmental concerns.
The project also underscores the growing importance of international partnerships in the energy sector. The collaboration between Orascom Construction and Técnicas Reunidas, as well as the involvement of international energy groups in Saudi Arabia’s power projects, highlights the need for shared expertise and resources in tackling complex energy challenges.
As the Qurayyah IPP Expansion Project takes shape, it will be interesting to see how it influences the development of the energy sector in Saudi Arabia and beyond. Will other countries in the region follow suit, investing in natural gas-fired power plants with carbon capture technology? How will this project shape the future of energy infrastructure in the Middle East? Only time will tell, but one thing is clear: the Qurayyah IPP Expansion Project is a significant development that is set to spark thought-provoking discussions and debates in the energy sector.
