Khaberni - "Saudi Energy" and "ACWA Power" announced the signing of a power purchase agreement with the Saudi Power Procurement Company "the main buyer", valued at 11.5 billion SAR ($3 billion), in order to implement the expansion project of the Rabigh 2 Independent Power Production (IPP) plant with a combined cycle system.
Separate statements issued by the companies on the "Tadawul" platform today, Sunday, explained that the plant’s production capacity reaches 2313.5 megawatts, with design readiness to accommodate a future unit for carbon capture, which enhances the environmental dimension of the project.
The companies also stated that the duration of the contract extends to 31 years from the expected commercial operation date for the entire station, with both "Saudi Energy" and "ACWA Power" owning a 40% stake in the project, which is being developed according to a long-term partnership model.
Regarding the project components, this includes the development, financing, construction, ownership, and operation of a combined cycle gas power plant, plus the construction and expansion of a 380 kV substation, which supports the integration of new capacities into the main electrical grid in the Kingdom.
On the other hand, the companies mentioned that the financial impact will be disclosed after the financial closure of the deal is completed, confirming that "Saudi Energy" is a related party in the agreement.
This step comes in the context of the energy sector expansions in the Kingdom within the targets of "Saudi Vision 2030", which is led by the Saudi Power Procurement Company to secure sustainable electrical supplies and improve production efficiency.
The Rabigh 2 project is one of the prominent projects in the independent production project portfolio, which relies on high-efficiency combined cycle technologies, with an increasing trend towards integrating emission reduction solutions such as carbon capture, in line with Saudi directions towards a more sustainable and diverse energy mix.
