Engie closes $1.2bn deal for Fadhili power plant
French utility firm Engie has said that it has been awarded the contract and achieved financial closing to build a power station at Fadhili in eastern Saudi Arabia
French utility firm Engie has said that it has been awarded the contract and achieved financial closing to build a power station at Fadhili in eastern Saudi Arabia.
The greenfield Fadhili independent power project (IPP) is a combined cycled gas power plant with a capacity of 1,507 MW and it will feed oil giant Saudi Aramco’s new gas plant in Jubail Industrial City. It will also supply electricity to 1.1 million households in the country.
Engie expects that the cogeneration plant will be completed by the end of 2019 and when operational, it will also produce 1,447 tons per hour of steam and 768.8 tons per hour of feed water.
Total investment for the project will be $1.2 billion.
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, a statement from Engie on Monday said.
The French company will have a 40 per cent equity ownership in the project while SEC and Saudi Aramco Power Holding Company (SAPHCO) will hold 30 per cent each, it said.
At the time of bidding in 2015, Saudi utility firm had said that it will hold 50 per cent of the project and Saudi Aramco will take 10 per cent, while the bid winner would have 40 per cent.
South Korean Doosan Heavy Industries & Construction won the contract for engineering, procurement and construction (EPC) while Siemens will supply the gas turbines.
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 statement said.
Isabelle Kocher, CEO of Engie said the company has earned a reputation of being a reliable developer and operator of electricity and water facilities in the kingdom over the last years and the award of Fadhili project reaffirms its leading position as independent power producer in the Middle East.
“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,” she added.
Engie has a portfolio of 30 GW power and more than 1,200 million gallons per day (MIGD) of desalination water production in operation (4.5 millions of cubic meters) in the Gulf Cooperation Council countries.
Together with the Fadhili project, the company currently has four plants in Saudi Arabia.