Korea Electric Power Corp. headquarters in Naju, South Jeolla Province / Yonhap
Korea Electric Power Corp. (KEPCO) has secured another cogeneration project in Saudi Arabia, strengthening its foothold in the Middle East’s fast-expanding energy market.
The state-run utility announced on Wednesday that it signed power and steam purchase agreements with oil giant Saudi Aramco to construct and operate Phase 2 of Saudi Arabia’s Jafurah cogeneration power plant. It also finalized an engineering, procurement and construction contract with Doosan Enerbility for the plant.
The project involves building a 331-megawatt cogeneration facility capable of producing about 465 tons of steam per hour by June 2029.
The facility will supply electricity and steam to Aramco for 17 years, generating an estimated 2.1 trillion won ($1.4 billion) in revenue over the contract period.
The deal builds on KEPCO’s earlier contract for the Jafurah Phase 1 cogeneration project, a 317-megawatt plant secured in 2022, which is scheduled for completion later this month.
“KEPCO secured the Phase 2 project on a sole-source basis, underpinned by its proven execution capabilities demonstrated in Phase 1 and the trust it built with the client,” the company said.
The new project will be operated through a special purpose company jointly established by KEPCO and Aramco. Doosan Enerbility will handle construction and the Export-Import Bank of Korea will provide financing support, while KEPCO will oversee operations.
The project is also expected to generate about 1.2 trillion won in overseas export opportunities for Korean companies.
KEPCO has steadily expanded its footprint in Saudi Arabia’s power sector since winning a contract for the Rabigh heavy oil power plant project in 2009. It has secured a series of major deals, spanning thermal, renewable and gas-fired generation.
Source: Korea Times News
