Elsewedy and Sinohydro Sign $2.2 Billion Contract for Rabigh 2 Power Plant
The two companies signed a $2.2 billion EPC contract for the expansion of the 2.3 GW Rabigh 2 gas-fired power plant, targeting commercial operation in May 2029.
Elsewedy Electric and Sinohydro have signed a $2.2 billion engineering contract for the expansion of the Rabigh 2 gas-fired power plant, according to Engineering News-Record magazine.
The two companies are executing the contract through a joint venture, aiming to add 2.3 GW of capacity to the plant.
The report noted that commercial operation is targeted for May 2029, and that the project has surpassed a 39% completion rate.
ACWA Power and Saudi Energy each hold a 40% stake in the project development company, reflecting a partnership between investors in the energy sector.
What do these terms mean?
EPC Contract: A contract covering engineering design, procurement, and construction, where the contractor is responsible for delivering the project ready for operation.
Commercial Operation: The phase in which the project actually begins producing and selling electricity after testing is completed.
Gas Power Plant: A power generation plant that runs on natural gas and can be dispatched quickly compared to other sources.
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