Doosan Heavy Industries and Construction, a Korean power company, signed a $900 million contract with global energy supplier Engie for the construction of a heat and power plant in Saudi Arabia, Doosan said on Monday.
The plant will be jointly owned by a Saudi Aramco affiliate (30 percent), Saudi Electricity Company (30 percent) and an Engie affiliate (40 percent).
Doosan will be in charge of the engineering, procurement, construction (EPC) work and commissioning of the cogeneration facility within the Fadhili gas plant located 85km northwest of Jubail Industrial port in Saudi Arabia’s eastern province. The Fadhili gas plant project, a key milestone of the Kingdom’s Master Gas System, is the nation’s initiative to meet the growing energy needs by shifting from oil to gas for power generation.
Scheduled for completion by November 2019, the 1,509MW combined heat and power plant will supply 400MW of electricity and steam for the Fadhili gas plant itself, and the remaining 1,100 megawatts will supply electricity to 1.1 million households nationwide.
Huntak Kim, the EPC CEO of Doosan Heavy Industries & Construction said, “The cogeneration plant will enhance the overall energy efficiency of the Fadhili gas plant. It will give Doosan an increased advantage to deliver more of its advanced power solutions and services where 40,000 MW of power capacity increase from combined heat and power plants is planned by 2024.”
Sebastien Arbola, the CEO of ENGIE Middle East, South Central Asia, and Turkey added, “The Fadhili gas plant is one of the key projects being pursued by the Kingdom to meet its power demands. ENGIE and Doosan have achieved major projects together in Oman, Qatar and Thailand. We have confidence to lead this project to success. ”
Established in 1962, Doosan Heavy Industries & Construction was a key player in development of the heavy machinery industry in Korea. They have since become renowned for water desalination and are now making substantial inroads in the eco-friendly power generation business.