Korea Electric Power Corporation won the contract for phase 2 of the Jafurah combined heat and power project in Saudi Arabia.
On the 3rd, KEPCO said it signed a power and steam sales contract with Saudi state-run oil company Aramco for the construction and operation of the Jafurah phase 2 combined heat and power plant. KEPCO then finalized a construction contract with Doosan Enerbility.
The project will build a combined heat and power plant with 331 MW of generation capacity and about 465 t of steam production per hour. The plant is scheduled for completion in Jun. 2029 and will supply electricity and steam to Aramco for 17 years thereafter. Total revenue is expected to reach about 2.1 trillion won ($1.4 billion).
The Jafurah phase 2 project is an expansion of the Jafurah phase 1 combined heat and power project, which is set for completion at the end of this month. The phase 1 project has 317 MW of generation capacity and was won by KEPCO through an international competitive bid in 2022. KEPCO said it won the phase 2 project on its own based on its successful execution of phase 1.
The phase 2 project will be operated by a special purpose company (SPC) jointly established by KEPCO and Aramco. Doosan Enerbility will take part in construction, and The Export-Import Bank of Korea will handle financing. KEPCO will participate in plant operations. KEPCO said this is expected to generate an overseas co-export effect for domestic corporations worth about 1.2 trillion won.
KEPCO has been steadily winning generation and renewable energy projects in the Saudi power market. Starting with the Rabigh heavy oil thermal project (1,200 MW) in 2009, it won the Jafurah combined heat and power phase 1 project in 2022; the Sudair solar project (2,000 MW), the Dumat Al Jandal 1 and Nairiyah 1 gas combined-cycle projects (3,780 MW) in 2024; and the Dawadmi wind project (1,500 MW) in 2025.