Power
Elsewedy Electric and Sinohydro secure $2.2bn Saudi power deal
Elsewedy Electric and Sinohydro have secured a $2.2 billion contract to expand the Rabigh 2 power plant in Saudi Arabia.
Key points
- Elsewedy Electric and China's Sinohydro form the winning consortium.
- The project adds 2.3 gigawatts of capacity using natural gas-fired combined-cycle technology.
- Commercial operations are scheduled to begin in May 2029.
What happened
A consortium comprising Egypt’s Elsewedy Electric and China’s Sinohydro has secured a $2.2 billion engineering, procurement and construction contract for the expansion of the Rabigh 2 Independent Power Plant in Saudi Arabia, according to Nairametrics.
Awarded by Al Mourjan Two for Electricity Company, the agreement involves building a natural gas-fired facility utilizing combined-cycle technology. The plant will incorporate six Siemens gas turbines, two steam turbines, and six heat recovery steam generators. Preliminary work has already pushed overall project progress past 39 percent, with commercial operations targeted for May 2029.
Why it matters
The expansion will integrate 2.3 gigawatts of electricity generation capacity into the national grid. This addition supports Saudi Arabia's broader economic transformation under Vision 2030, which seeks to satisfy rising domestic demand across industrial, commercial, and residential sectors while cutting reliance on liquid fuels.
What comes next
The consortium will finish construction, installation, testing, and grid integration. Saudi Arabia continues to develop its energy network to balance natural gas expansion with long-term renewable energy targets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
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Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
