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Germany's Siemens Energy has confirmed an order, worth a total of $1.5bn, to supply its HL-class gas turbines along with a 25-year maintenance contract for two upcoming power plants in Saudi Arabia.

China Energy International Group, the lead engineering, procurement and contracting (EPC) contractor for the Taiba 2 and Qassim 2 independent power producer (IPP) projects in Saudi Arabia, awarded the contract to Siemens Energy.

Siemens Energy´s HL-class gas turbines, in combination with steam turbines and generators, will generate approximately 2,000MW of electricity at each site.

According to Siemens Energy, the Taiba 2 and Qassim 2 power plants will be initially connected to the grid in simple cycle mode in 2026 and will be permanently operated as a combined cycle power plant one year later.

The new plants are expected to save up to 60% of carbon dioxide (CO2) emissions compared with oil-fueled power plants.

They will also be compatible with Saudi Arabia's energy strategy, which calls for the construction of CO2 capture and storage facilities in the medium term, to enable a carbon-neutral energy supply.

3.6GW contract award

A utility developer team led by the local Al-Jomaih Energy & Water Company (Jenwa) won the contract to develop Taiba 2 and Qassim 2 last year.  

The developer team, which includes France’s EDF and the local Buhur for Investment, signed a 25-year power-purchase agreement with the principal buyer, Saudi Power Procurement Company (SPPC), for the projects in November 2023.

The team subsequently appointed an EPC team, led by China Energy International Group, to work on the project, which is expected to reach financial close this month, as MEED reported.

The Qassim 2 and Taiba 2 combined-cycle gas turbine (CCGT) plants will each have a power generation capacity of 1,800MW.

Photo: Siemens Energy