Germany’s Siemens has been awarded two contracts worth an estimated total of SR1bn ($266m) to supply gas turbines and build a substation for Saudi Electricity Company (SEC).

The first contract will involve supplying five gas turbines for power plants, which will contribute 388MW of additional capacity to the grid in the Rafha, Qurayyat and Arar areas of the kingdom.

For the second contract, Siemens will build the Al-Kharj 2 380kV substation. The German firm will supply all of the components for the substation.  

The contracts are the latest of a number of deals that Siemens has been awarded in the kingdom in the past two years. In March 2012, the firm signed a land lease agreement with Saudi Industrial Property Authority for the construction of a manufacturing and service facility in Dammam, Saudi Arabia.

Under the agreement, Siemens will lease a 220,000-square-metre plot of land in Dammam Industrial City and build a facility capable of manufacturing gas turbines, compressors and heat recovery steam generators for the Saudi market.