Singapore company wins $34m Saudi power contract
Rotary Engineering will build 17 storage tanks for a power plant
Rotary Engineering has won a $34m contract to build storage tanks for a power plant in Saudi Arabia.
The Singapore based company, which provides construction and engineering services, will build 17 field storage tanks that will be used to store fuel oil. Work on the tanks will start in June and is expected to be completed next year.
“This is a strategic win for us and is another affirmation that our strategy to capitalise on our presence in Saudi Arabia is bearing fruit. We are hopeful and optimistic that more opportunities will open to us as we continue to fortify our presence in Saudi Arabia,” said Mr Chia Kim Piow, Rotary’s managing director.
“As we continue to build our reputation and track record in Saudi Arabia, we are confident that we will be able to convert more tenders into contracts over time," he added.
The contract relates to a $1.23 billion power plant project in Shoaiba, some 120 km south of the Red Sea city of Jeddah. It was awarded to Rotary's joint venture company Petrol Steel Company by South Korea's Daelim Group, which is the main contractor for the project. The combined-cycle plant, which is owned by the Saudi Electricity Company, will have a power capacity of 1,238 megawatt when completed.
Previous contracts for Rotary, which entered the Middle East market in 2006, include a $745m project to build a refinery tank farm in Saudi Arabia and a $250m project to build a petroleum storage facility in the United Arab Emirates.