Doosan Enerbility has signed a 2.2 trillion won ($1.5 billion) contract to build two combined cycle power plants in Saudi Arabia, the Korean heavy industry manufacturer said Thursday.
According to Doosan Enerbility, it secured the engineering, procurement and construction ― or EPC ― agreement for the construction of the Luma 1 and Nairiyah 1 power plants with the Korea Electric Power Corporation-led consortium.
The Luma 1 and Nairiyah 1 projects, which are located 80 kilometers and 470 km northeast of Riyadh, respectivley, will have a capacity of 1,800 megawatts at each site. The electricity generated at the plants will be sold to the Saudi Power Procurement Company for 25 years upon completion. The plants are scheduled to be constructed by 2028.
The demand for electricity has been on the rise. According to market analysis firm Mordor Intelligence, the combined output of power plants in the Middle Eastern country is estimated at 92.9 gigawatts and expected to reach 123.2 GW in 2030 with a compound annual growth rate of 6 GW additional power plants being built per year.
“This contract is a case that reaffirms Doosan Enerbility’s construction capabilities and competitiveness on the global stage in the midst of increasing demand for energy in the Middle Eastern region,” said Lee Hyeon-ho, head of Doosan Enerbility’s EPC business group.
“We will do our best to stably provide electricity within Saudi Arabia.”
By Kan Hyeong-woo (hwkan@heraldcorp.com)
