Doosan Enerbility (034020) has secured a cogeneration power plant construction project worth approximately 840 billion won in Saudi Arabia.
Doosan (000150) Enerbility said Wednesday it has signed a contract with a consortium of Korea Electric Power Corp. (015760) and Saudi Aramco for the construction of Phase 2 of the Saudi Jafurah cogeneration power plant. The contract is valued at 837 billion won. The construction cost increased by approximately 55% from the 540 billion won Phase 1 project awarded in 2022, reflecting the impact of the won-dollar exchange rate and rising construction material prices.
Doosan Enerbility will carry out the project on an engineering, procurement and construction (EPC) basis, handling the entire process from design to equipment supply, installation, construction and commissioning. Korea Electric Power Corp., serving as the developer, will be responsible for project development and operation.
The Phase 2 Jafurah cogeneration plant, targeted for completion in 2029, will be built near the Jafurah gas field, located 400 kilometers east of the Saudi capital Riyadh. Once completed, the plant will produce 330 megawatts (MW) of electricity and 465 tons of steam per hour to supply power and heat to the nearby gas field.
The plant's key equipment, the steam turbine, will be manufactured and supplied by Doosan Skoda Power, a subsidiary of Doosan Enerbility.
"We find it meaningful to have won this Phase 2 project following the Phase 1 project in 2022," said Lee Hyun-ho, head of Doosan Enerbility's Plant EPC Business Group. "As large-scale power project orders are expected to continue in Saudi Arabia and the broader Middle East, we will further strengthen our market push based on our accumulated technology and experience."
Doosan Enerbility has been strengthening its position in the local market by winning a series of large-scale projects in the Middle East. The company previously secured a gas power plant deal worth approximately 290 billion won from Qatar General Electricity & Water Corp., as well as the Saudi Rumah 1 and Nairyah 1 combined-cycle gas power plant projects worth approximately 2.2 trillion won.
