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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia. 

The Rumah 2 and Nairiyah 2 CCGT  plants will each have a capacity of roughly 1,800MW, requiring an estimated investment of $2bn each.

The value of the contract Siemens Energy won is $1.6bn.

Siemens Energy will supply six SGT6-9000HL gas turbines, four SST6-5000 steam turbines, eight SGen6-3000W generators, two SGen6-2000P generators and associated auxiliary equipment for each site.

The power plants are designed to replace ageing oil-fired stations, reducing carbon dioxide emissions by up to 60% compared to traditional oil-based power generation.

The project includes long-term maintenance agreements to support the plants’ operational reliability over the next 25 years, Siemens Energy said.  

It added: “Core components for the power plants will be manufactured at the Siemens Energy Dammam Hub, which is currently expanding to increase local production capacity and support Saudi Arabia’s energy sector.”

MEED reported in November last year that a developer consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company had partnered with Siemens Energy for the projects’ gas turbines contract.

The consortium tapped Harbin Electric to undertake the projects’ EPC.

The power generation projects will be developed using a build, own and operate (BOO) model over 25 years, with principal buyer Saudi Power Procurement Company (SPPC) as the sole offtaker.

SPPC previously indicated that the four power plants will operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.

SPPC’s transaction advisory team for the Rumah 1 and Nairiyah 1 and Rumah 2 and Al-Nairiyah 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

Photo credit: Siemens Energy

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Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes: