Doosan Enerbility Lands 2.2 Trillion Won Gas Combined Cycle Power Plant Contract in Saudi Arabia

Chairman Park Jung-won of Doosan Group. (Photo: Doosan Group)

Doosan Enerbility Co. signed a 2.2 trillion won contract for two combined cycle power plants in Saudi Arabia.

Doosan Enerbility struck a contract to build the Luma 1 and Nairyah 1 power plants with a consortium, led by Korea Electric Power Corp., the developer of the project, the company said on March 13.

Doosan Enerbility and its consortium partner SEPCO-3, a power plant construction company, are scheduled to complete all processes, ranging from design to equipment supply, installation and test-operation through the engineering, procurement and construction (EPC) by 2028.

The Luma 1 and Nairyah 1 power plants had been open to international bidding by Saudi Power Procurement Company.

The project calls for the construction of Luma 1 and Nairyah 1 power plants, each located 80 km and 470 km northeast of Riyadh.

The two plants, each with a capacity of 1,800MW, will generate and supply electricity for 25 years to SPPC. The KEPCO consortium singed a power purchase agreement with SPPC last November.

Lee Hyun-ho, head of the Plant EPC Business Group at Doosan Enerbility, said, “The contract has served as an example to prove Doosan Enerbility’s construction technology and competitiveness in the international stage once again as energy demand in the Middle East region is on the rise, and we will do our utmost to stabilize the supply of power in Saudi Arabia.”

Power demand in Saudi Arabia is on a constant rise.

A survey, conducted by the market survey institution Mordor Intelligence, showed that the size of power facilities in Saudi Arabia is forecast to grow from 92.9GW in 2025 to 123.2GW in 2030 – expanding plants for an annual average of 6GW capacity.

This map shows the location of the Luma 1 and Nairyah 1 power plants, each located 80 km and 470 km northeast of Riyadh. (Photo: Doosan Enerbility)

Doosan Enerbility Wins 890 Billion Won Combined Cycle Gas Turbine Plant

Doosan Enerbility struck a 890 billion won contract to build the Combined Cycle Gas Turbine Power Plant 12 (PP12) with the owner, Saudi Electricity Company (SEC), the company said on March 14.

Doosan Enerbility formed a consortium with SEPCO-3 to win the contract.

The company is responsible for design, supply of major equipment and comprehensive test-operation.

PP12 with a capacity of 1800MW, located some 150 km northwest of Riyadh, is scheduled to be dedicated by 2028. SEC is implementing the project to swiftly cope with a surge in power demand in Saudi Arabia.

When PP12 is completed, it is expected to contribute to stabilize Saudi Arabia’s power grid.

Lee Hyun-ho, head of the Plant EPC Business Group at Doosan Enerbility, said, “Saudi Arabia sees power demand constantly rise, requiring power plants with an annual average capacity of 6Gwin the next five years.”

Doosan Enerbility has proved its competitiveness by striking contracts for the construction of four power plants so far this year — a peak unit in Qatar, and the Luma 1, Nairyah 1, and PP12 power plants in Saudi Arabia. The company plans to expand its market presence further, Lee said.

The value of the projects, including the latest one, for the most recent five years comes to some 6.7 trillion won.

The other projects include Jafurah Thermal Power Plant Construction Project, Tuwaiq Casting & Forging Construction Project, and the Yanbu 4 and Shuwaikh 3 Desalination Plant Construction Project.