Samsung C&T has been awarded the $1.2 billion engineering, procurement and construction (EPC) contract for a new combined cycle, gas-fired power station in Saudi Arabia. The 2,100-megawatt (MW) Rabigh II Independent Power Project (R2IPP) will be located in Rabigh, and is expected to begin commercial operation in 2017.
A consortium consisting of Samsung C&T and ACWA Power was awarded preferred bidder status for the R2IPP tendered by the Saudi Electricity Company (SEC) in January. Soon after, project firm "Al Mourjan for Electricity Production Company" was established, with the wining consortium and SEC each owning a 50% stake.
"The company is proud to be the EPC contractor of R2IPP which will help to deliver value to the economic expansion and at the same time serve the electricity needs of Saudi Arabia," Samsung C&T said in a statement.
Saudi Arabia is planning six independent power projects in the Kingdom aimed at adding 20,000 MW to the domestic grid by 2018. As part of this plan, Samsung C&T, as part of a consortium, was also awarded a $2.85 billion EPC contract for the 4,000 MW combined cycle, gas-fired Qurayyah Independent Power Project outside of the eastern city of Dammam. The Qurayyah IPP is slated for completion in 2014.