Saudi power plant open to bidders until Feb 28

Qurayyah IPP1 will be located in Khobar and cost US$1.8bn to build

The plant is one of six IPP projects planned for KSA to increase power generation capacity to meet rising demand.
The plant is one of six IPP projects planned for KSA to increase power generation capacity to meet rising demand.

Firms with experience in power plant construction have until Feburary 28 to get their bids in for work on the gas-fired al-Qurayyah power plant, to be erected in Saudi Arabia.

An executive from state-owned developer Saudi Electricity Company (SEC) told Reuters that SEC had completed the pre-qualification process of 14 bidders for the new plant, and issued the request for tenders.

Among the firms in the running for the power project are Saudi ACWA Power Projects, Korea Electric Power Corporation (KEPCO), Japan's Mitsui & Co. Ltd and Malaysia's Tenaga Nasional Berhad and Saudi Binladin Group.

This is in addition to Saudi National Power Co (NPC) in an alliance with Abu Dhabi National Energy Co (TAQA), Malaysia's Powertek Berhad (Powertek) in a consortium with Saudi Oger Ltd, UK firm Sembcorp Utilities Pte Ltd, Suez-Tractebel and a number of other companies.

Qurayyah IPP1, which will be located in Khobar, will use as much as 300 million cubic feet of gas per day, cost US$1.8 billion to build and increase the power generation capacity in the region from 1,800MW to 2,100MW.

Scheduled for completion in June 2014, it is the third of six IPP projects planned in Saudi Arabia with the help of the private sector, creating a combined additional capacity of 11,000MW.

The aim is to increase power generation capacity in the Kingdom in line with rising demand for power, which is rising at a rate of 8% per year.

In addition to Qurayyah IPP1, the SEC plans to invest $80 billion to boost capacity to at least 70,000 MW by 2020 from a current capacity of 50,000 MW.

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