(Headline corrected with the addition of HAACO)  

A consortium of Saudi Electricity Company (SEC), ACWA Power and Haji Abdullah Alireza and Co (HAACO) has signed a 25-year Power Purchase Agreement (PPA) with Saudi Power Procurement Company (SPPC) for the 3,010 MW Qurayyah Independent Power Plant (IPP) Expansion Project in Saudi Arabia’s Eastern Province.

SEC said in a statement that the 13.4 billion Saudi riyals ($3.6 billion) project involves construction and operation of carbon capture ready Combined Cycle Gas Turbine (CCGT) Power Plant under a Develop, Finance, Build, Own, and Operate model and a 380kV electrical substation under Develop, Build and Transfer model.

SEC holds a 40 percent effective share in the project, the statement said.

It said the PPA, signed on 19 February, will take effect from the plant’s commercial operation date, with the financial impact expected to be reflected from the second quarter of 2028 onwards.

No specific timeline construction was disclosed.

ACWA Power holds a 40 percent stake in the project while HAACO's stake is 20 percent.

In October 2024, Zawya Projects had reported that Saudi Arabia plans to tender 6 gigawatts (GW) of CCS-ready gas power plants in 2025.

SEC and ACWA Power are stakeholders in Hajr Electricity Production Company (HEPC), the project company for the existing 3,927MW Qurayyah IPP, which was built at a cost of $2.7 billion. 

Read more: Saudi's SPPC signs PPAs for 9.2GW power projects

(Writing by Deva Palanisamy; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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