Korea Electric Power Corp. has secured a 2.1 trillion won ($1.4 billion) contract to build and operate a cogeneration power plant in Saudi Arabia's Jafurah gas field.
KEPCO said Wednesday it signed a power and steam sales agreement with Saudi state oil company Aramco for the construction and operation of the Jafurah Phase 2 cogeneration plant.
The company also finalized a construction contract with Doosan Enerbility. The project involves building a cogeneration facility with a power generation capacity of 331 megawatts and steam output of approximately 465 metric tons per hour.
Once completed in June 2029, the plant will supply electricity and steam to Aramco for 17 years. Total sales are projected to reach approximately 2.1 trillion won ($1.4 billion).
The project expands on the Jafurah Phase 1 cogeneration project (317 MW), which KEPCO won through an international competitive tender in 2022 and is set to be completed later this month.
KEPCO said it secured the Phase 2 contract on a sole-source basis on the strength of its successful execution of Phase 1. A special purpose company jointly established by KEPCO and Aramco will manage the Phase 2 project, with Doosan Enerbility handling construction, the Export-Import Bank of Korea providing financing, and KEPCO overseeing operations.
The deal is also expected to generate roughly 1.2 trillion won in indirect export benefits for South Korean companies, KEPCO said.
KEPCO has steadily built its presence in the Saudi power market since winning the Rabigh heavy oil power project (1,200 MW) in 2009, followed by the Jafurah Phase 1 cogeneration project in 2022, the Sadawi solar project (2,000 MW) and the Luma 1 and Nairyah 1 gas combined-cycle projects (3,780 MW) in 2024, and the Dawadmi wind power project (1,500 MW) in 2025.
oskymoon@heraldcorp.com
