Win follows earlier Saudi wind, solar and gas combined-cycle projects; KEPCO secures Jafurah Phase 2 cogeneration contract
Total sales of approximately 2.1 trillion won (about $1.39 billion) projected over 17-year power and steam supply agreement
Korea Electric Power Corp. (KEPCO), led by President Kim Dong-chul, has again demonstrated its global competitiveness in the Middle East energy market by securing the Jafurah Phase 2 cogeneration project in Saudi Arabia.
KEPCO said Wednesday it had successfully signed a power and steam sales agreement with Saudi Aramco — Saudi Arabia's state-owned oil company — for the construction and operation of the Jafurah Phase 2 cogeneration plant, and separately concluded a construction contract with Doosan Enerbility. The project calls for building a cogeneration plant with a generation capacity of 331 megawatts and steam output of approximately 465 tons per hour by June 2029, followed by 17 years of power and steam supply. Total sales are projected at approximately 2.1 trillion won.
The project expands on the Jafurah Phase 1 cogeneration project (317 megawatts), which KEPCO won through an international competitive tender in 2022 and is scheduled for completion by the end of this month. KEPCO secured the Phase 2 contract on a sole-source basis, leveraging its proven track record and the trust it built with the client through successful execution of Phase 1.
Phase 2 will be managed by a special purpose company jointly established by KEPCO and Aramco. Doosan Enerbility will handle plant construction, the Export-Import Bank of Korea will provide financing, and KEPCO will oversee operations. The arrangement is also expected to generate roughly 1.2 trillion won in overseas export opportunities for South Korean companies.
KEPCO has steadily built a strong foothold in the Saudi power market since winning the Rabigh heavy-oil power project (1,200 megawatts) in 2009. Subsequent wins include the Jafurah Phase 1 cogeneration project in 2022, the Sudair solar project (2,000 megawatts) in 2024, the Rumah 1 and Nairyah 1 gas combined-cycle projects (3,780 megawatts) in 2024, and the Dawadmi wind project (1,500 megawatts) in 2025.
Building on that track record, KEPCO expects to expand further across the Middle East and said it will make every effort to win additional follow-on cogeneration contracts from Saudi Aramco, which are scheduled to be tendered in the second half of this year.
KEPCO plans to use this latest contract as a springboard to accelerate its push into the Middle East energy market across gas combined-cycle, renewable energy, power grid and energy storage system sectors. The company also intends to broaden its collaborative overseas expansion with South Korean firms under a "Team Korea" framework, reinforcing its role as the country's leading state energy enterprise.
kkm9971@heraldcorp.com
