French utility Engie wins $1.2bn Saudi power deal
01 November 2016
French utility company Engie said it has won a major contract from Saudi Electricity Company (SEC) to build a 1,504 MW power plant at an estimated cost of $1.2 billion in the kingdom.
The contract for the Fadhili power plant was awarded by SEC in partnership with national oil giant Saudi Aramco, according to a Reuters report.
Scheduled to be operational by the end of 2019, the Fadhili power plant will be owned 30 per cent by SEC, 30 per cent by Aramco and 40 per cent by private sector partners, it stated.
The plant is part of the Fadhili gas project which is set to become a key component of the kingdom’s master gas system, processing gas from both onshore and offshore fields.
Together with Wasit and Midyan, Saudi Aramco’s two other new major gas projects, Fadhili will add more than 5 billion standard cu ft per day (SCFD) of non-associated gas processing capacity. The increase in the supply of natural gas will grow above 17 billion SCFD by 2020, enabling opportunities in Saudi industries such as steel, aluminium, and downstream value-added industries.
The project will be developed at a total cost of more than SR50 billion ($13.3 billion) with emphasis placed on in-kingdom expenditures, benefiting localisation initiatives that will reach 40 per cent of the total cost.
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