Rabigh 2 Expansion Signs $2.2 Billion EPC for 2.3 GW Gas Plant

Elsewedy Electric PSP and Sinohydro have signed the engineering, procurement and construction contract for the Rabigh 2 Independent Power Plant expansion on Saudi Arabia's west coast. The contract is worth $2.2 billion. The developer is Al Mourjan Two for Electricity Company, owned by ACWA Power and Saudi Energy, which announced financial close on 4 October.

The 2,313.5 MW plant will use six Siemens SGT6-5000F gas turbines and two SST-5000 steam turbines in a two-block configuration, with bypass stacks for simple-cycle operation. Commercial operation is targeted for May 2029. Work began under a limited notice to proceed, and the contractors put overall progress at more than 39%.

At $2.2 billion for 2,313.5 MW, the EPC price is about $950 per kW by our calculation. That excludes owner's costs, financing and grid connection beyond the EPC scope, so the all-in project cost per kW will be higher.