France's Engie has been awarded the contract and achieved financial closing for the Fadhili independent power project (IPP) in Saudi Arabia.
Located in the east of Saudi Arabia, 50 kilometers northwest of Jubail Industrial City, the $1.2 billion Fadhili project is a combined cycled gas power plant with a capacity of 1,507 MW, the company said in a statement.
It will provide electricity to some 1.4 million people and will also produce 1,447 tons per hour of steam and 768.8 tons per hour of feed water.
Saudi Electricity Company (SEC) will be the off-taker for electricity and Saudi Aramco for the steam and feed water under 20-year purchase agreements.
Engie will have a 40% equity ownership in the project company, SEC will hold 30% and Saudi Aramco Power Holding Company (SAPHCO) 30%.
Engie will work on this project together with South Korean Doosan Heavy Industries & Construction for engineering, procurement and construction (EPC) and with Siemens for the gas turbines supply.
The technology used will ensure that the stringent emission requirements imposed on the project (less than 9 ppm1 NOx) are respected, Engie said.
The scope of work will also include the construction of a 380 kV substation to be transferred to SEC in 2018 for ownership, operation and maintenance.
“The Fadhili project is in line with our strategy that aims at concentrating on low CO2 activities via renewable energies and gas for power generation” commented Isabelle Kocher, CEO of Engie.
The commercial operation of the Fadhili plant is scheduled at the end of 2019.