Hyundai wins $3.3bn Shuqaiq power plant deal

05 August 2013

South Korean contractor wins its second major power contract in kingdom in 10 months

South Korea’s Hyundai Heavy Industries (HHI) has been awarded the $3.3bn contract from the Saudi Electricity Company (SEC) to build the 2,640MW Shuqaiq power plant in Saudi Arabia.

The South Korean contractor will build the steam plant on a turnkey basis, which will include engineering, procurement and construction (EPC), testing and commissioning. The plant will be located on the Red Sea coast, about 580 kilometres south of Jeddah, and is scheduled to be commissioned in 2017.

HHI signed the contract with SEC on 4 August.

MEED recently reported that HHI has submitted the lowest price out of eight bidders for the EPC contract. HHI saw off competition from the second-lowest bidder, the South Korean joint venture of Doosan and GS Engineering & Construction and South Korea’s Samsung C&T, which had submitted the third-lowest price.

This is the second major power contract in the kingdom HHI has won in the past 10 months.The Shuqaiq plant is similar in size and specification to the 2,640MW Jeddah South plant, for which HHI was awarded the $3.2bn EPC contract to build in October 2012.

The Jeddah South plant will comprise four conventional thermal generating units, each with a minimum capacity of 600MW. The contractor will also be responsible for constructing a 380kV substation to serve the project. Japan’s Mitsubishi Heavy Industries (MHI) will supply the equipment for the plant.

The Jeddah South plant is scheduled for completion by 2017. When operational, the power plant will be able to produce enough electricity for 2 million people, the equivalent of 5 per cent of the kingdom’s entire power generation capacity.

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