Saudi IPP Contract for Engie

French utility giant Engie said January 30 it has been awarded the contract, and achieved financial closing, for the greenfield co-generation Fadhili independent power project (IPP) in eastern Saudi Arabia, 50 km northwest of Jubail Industrial City.

Total investment will be $1.2bn and commercial operation is scheduled for the end of 2019.

The Fadhili project is a 1.507-GW combined-cycle gas turbine (CCGT) power plant that will also produce 1,447 metric tons/hr of steam and 768.8 mt/hr of feed water.

Saudi Electricity Company (SEC) will be off-taker for electricity and Saudi Aramco for the steam and feed water under 20-year purchase agreements. Engie will have a 40% equity ownership in the project company, SEC will hold 30% and Saudi Aramco Power Holding Company 30%.

The engineering, procurement and construction (EPC) contract has been awarded to South Korean Doosan Heavy Industries & Construction, while Siemens will supply the gas turbines. Scope of work will also include the construction of a 380 kilovolt substation to be transferred to SEC in 2018.

Engie CEO Isabelle Kocher said the award of the Fadhili project “reaffirms Engie’s leading position as independent power producer in the Middle East.” The company says it has a total gross portfolio of 30 GW power and over 1,200mn gallons/day of desalination water production in operation in the six Gulf Cooperation countries, of which 6 GW and 176mn gallons/d in Saudi Arabia.  

Gas process plant (Photo credit: Tecnidas Reunidas)

Spain's Tecnidas Reunidas was awarded a multi-billion dollar contract in March 2016 to build two gas process plants at Fadhili by Saudi Aramco that will process 2.5bn ft³/d of non associated gas from Aramco's Hasbah and Khursaniyah fields. The UK's Petrofac was awarded a smaller contract in November 2015 linked to sulphur recovery from gas at the two fields.

Mark Smedley