Saudi: Doosan Heavy secures $896m power plant deal
Doosan Heavy Industries & Construction has secured an engineering, procurement, and construction contract for a major power plant in Saudi Arabia
Doosan Heavy Industries & Construction has secured the main contract for the construction of the Fadhili combined cycle power plant project in Saudi Arabia in a deal worth $896.46m (SAR3.36bn).
The power plant will supply electric power and heat to the Fadhili Gas Complex located 85km northwest of Jubail Port in the Eastern province of Saudi Arabia. It will have a capacity of 1,519MW.
The South Korean company formed a consortium with French energy company Engie to participate in the bid and received a notification that it won the project commissioned by Saudi Electricity Company (SEC) and the state-run oil company Aramco.
Under the terms of the contract, Doosan will undertake the full range of engineering, procurement, and construction (EPC) functions from design through to equipment manufacturing, installment and pilot operation. The project is scheduled for completion by the end of November 2019.
Kim Hun-tak, chief executive officer of Doosan's EPC business, said: “This contract comes at an important time when orders from the Middle East are decreasing because of low oil prices. The competition was fierce with local consortia and global rivals bidding for the project.”
Doosan Heavy Industries signed a limited notice to proceed (LNTP) with Engie in September for the purposes of bidding for the construction project and this agreement officially took effect on the 7th October, when the consortium was notified by letter of the award.
The Export-Import Bank of Korea also gave Doosan financial support as part of its initiative to help Korean companies win orders from foreign contractors. Engie will also help finance the project.
Hun-tak continued: “This contract allows us to gain an upper hand in Saudi Arabia, which has continuous plans to establish more combined-cycle power plants generating an accumulated power amount of up to 40,000MW by 2024.”
In April, Doosan Heavy also completed a thermoelectric power plant in Rabigh, a town north of the coastal city of Jeddah. Capable of generating 2,800MW, it currently produces the largest amount of electricity in the world from a single power plant.