SEC and Acwa Power sign Qurayyah IPP expansion deal | MEED
The two firms will co-develop the $3.5bn carbon capture-ready plant expansion project
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Riyadh-based utility firm Saudi Electricity Company (SEC) and Acwa Power have signed a power-purchase agreement with the principal buyer, Saudi Power Procurement Company, for the expansion of the Qurayyah independent power project (IPP) in Saudi Arabia.
The Qurayyah IPP expansion project will have a generation capacity of 3,010MW and is expected to be carbon capture-ready, the two firms said in separate bourse filings on 20 February.
SEC and Acwa Power will each have an effective shareholding of 40% in the project, which is valued at SR13.4bn ($3.57bn).
Hajj Abdullah Alireza & Company (Haaco) will own the remaining 20%.
The three firms will develop, finance, build, own and operate the combined-cycle gas turbine plant.
The project also includes the development, financing, construction and transfer of a 380-kilovolt (kV) electrical substation.
The project duration is 25 years from the plant commercial operation date.
Acwa Power, South Korea’s Samsung C&T, Mena Infrastructure Fund and SEC own Hajr Electricity Production Company, the development company behind the existing 3.9GW Qurayyah 1 & 2 IPP in Saudi Arabia.
The Qurayyah 1 & 2 IPP reached commercial operations in 2015.
The expansion of the Qurayyah IPP is not to be confused with a separate engineering, procurement and construction (EPC) project with the same name.
Egyptian contractor Orascom is understood to be undertaking the EPC contract for the 3.6GW Qurayyah EPC project.
MEED reported in September 2024 that Orascom had received limited notice to proceed on the project from SEC.
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