Egypt-based Orascom Construction and Spanish engineering firm, Técnicas Reunidas, have secured a $2.6 billion contract to construct the 3 gigawatt (GW) Qurayyah IPP Expansion Project, a combined cycle gas-fired power plant in the Eastern Province of Saudi Arabia.
According to a statement released by Orascom, the joint venture, equally owned by both companies, will handle the Engineering, Procurement, and Construction (EPC) of the project, which includes carbon capture readiness and a 380-kilovolt (kV) electrical substation.
The EPC contract, valued at over $2.6 billion, was signed with Hajr Two Electricity Company, a consortium led by ACWA Power, Saudi Electricity Company, and Haji Abdullah Alireza & Co. Ltd.
Speaking on the project, Osama Bishai, Chief Executive Officer (CEO) of Orascom Construction, said “This project aligns with our strategy to diversify geographically while focusing on key sectors like power and water. It allows us to leverage our expertise to deliver high-quality infrastructure and maximize value.
“Building on our recent successes in Egypt’s power sector, we aim to make a significant impact in Saudi Arabia. We are also pleased to strengthen our partnership with Técnicas Reunidas on this large-scale venture.”
The joint venture has already received the Limited Notice to Proceed, marking a key step forward in the project’s execution.
This expansion reinforces Orascom Construction’s position as a leading player in the power sector across the Middle East and Africa.
The company has a proven track record, having delivered and currently constructing power projects with a total capacity exceeding 30 GW, including two 4.8 GW combined cycle power plants in Egypt.
The project is part of a number of contracts signed by Tecnicas Reunidas in the past months in the Middle East and elsewhere that will allow it to triple its net profit in 2026 from 2023.
The Spanish company, known for building energy infrastructure, has seen its shares rise nearly 50% this year.
This growth comes as it recovers from an investment slowdown caused by the pandemic and the war in Ukraine.
The Qurayyah IPP Expansion highlights Saudi Arabia’s efforts to strengthen its energy infrastructure.
The project also incorporates sustainable solutions, such as carbon capture readiness, to support the country’s long-term environmental goals.
