POWERCHINA, Elsewedy, Sinohydro Sign EPC Contract for Rabigh 2 Project
The Rabigh 2 Independent Power Producer (IPP) Expansion Project in Saudi Arabia has reached a major milestone with the signing of its Engineering, Procurement and Construction (EPC) contract with a consortium involving Power Construction Corporation of China (POWERCHINA), Elsewedy Electric and Sinohydro. The EPC contract signing ceremony was held recently in Riyadh, bringing together senior representatives from the project stakeholders and consortium partners. The ceremony marks a significant step forward in the development of the large-scale gas-fired power project in Rabigh, on Saudi Arabia’s western coast.
The project has a planned generation capacity of approximately 2,400 MW, positioning it among the major gas-fired combined-cycle power developments in the Kingdom. The EPC contract value has not been disclosed in the available announcement. Under the EPC contract, the consortium will undertake the comprehensive execution of the project, covering engineering and design, procurement, construction, installation, commissioning, grid connection and performance testing.
The consortium brings together the international engineering, power generation and infrastructure capabilities of POWERCHINA, Elsewedy Electric and Sinohydro. POWERCHINA contributes its extensive experience in power engineering and construction, while Elsewedy Electric brings expertise in electrical infrastructure and integrated energy solutions. Sinohydro, part of the POWERCHINA group, has experience in delivering large-scale energy and infrastructure projects.
The Rabigh 2 IPP Expansion is expected to support Saudi Arabia’s growing electricity demand, driven by industrial development, population growth and economic diversification under Saudi Vision 2030. The planned gas-fired combined-cycle power plant is designed to deliver efficient and reliable electricity generation. Its ability to operate in simple-cycle and combined-cycle modes will provide operational flexibility to respond to changing power demand.
The project is also expected to contribute to the stability and reliability of the Saudi national electricity grid as the Kingdom continues to expand renewable energy capacity and integrate more intermittent power generation into its electricity mix. The EPC contract signing follows the recent financial close announced by ACWA Power for the 2,313.5 MW Rabigh 2 CCGT expansion project in Saudi Arabia. The financial close represents a key financing milestone for the development.
