China Hydropower Signs US$2.2 Billion Gas Power Plant Contract in Saudi Arabia with Egyptian Partner

en.Wedoany.com Reported - On October 13, a consortium formed by Sinohydro, a subsidiary of Power Construction Corporation of China (PowerChina), and Egypt's Elsewedy Electric PSP announced the signing of an engineering, procurement and construction (EPC) contract for the Rabigh 2 Independent Power Plant expansion project in Saudi Arabia, with a total contract value of approximately US$2.2 billion. The project adopts gas-fired combined-cycle power generation technology with an installed capacity of approximately 2,300 MW. It was awarded by Saudi Arabia's Al Mourjan Two Electricity Company and is scheduled to achieve commercial operation in May 2029.

The consortium is responsible for power plant design, equipment procurement, civil construction, installation and commissioning, performance testing, and grid connection works. The plant will be equipped with six Siemens Energy SGT6-5000F gas turbines, two SST-5000 steam turbines, and six heat recovery steam generators, employing two combined-cycle power generation systems, and will be furnished with cooling towers, bypass stacks, flue gas diverter dampers, as well as mechanical, electrical, instrumentation and control systems. The plant design reserves space for future installation of carbon capture facilities.

The project is located in the Rabigh area on the Red Sea coast in western Saudi Arabia. According to data disclosed by the contractors, the consortium had previously carried out site construction under a limited notice to proceed, and overall project progress has exceeded 39%. Following the formal signing of the EPC contract, the consortium will continue to execute construction and equipment installation tasks. The project achieved financial close on October 1, securing a long-term loan of approximately SAR 9.69 billion with a term of approximately 34 years.

The project development company is owned 40% each by Saudi International Power and Water Company (ACWA Power) and Saudi Energy Company, with another shareholder holding 20%. In April 2026, the project signed a 31-year power purchase agreement with the Saudi Power Procurement Company, valued at approximately SAR 11.5 billion. The expansion project also includes construction related to a 380 kV substation, which will supply power to the Saudi national grid upon completion.