Saudi Energy Company has announced that it has signed a SAR11.5 billion ($3.1 billion) power purchase agreement with Saudi Power Procurement Company (SPPC) for the Rabigh 2 Independent Power Producer (IPP) expansion project in Saudi Arabia.

On completion, the project, located in Makkah province, will boast a large-scale combined cycle gas turbine (CCGT) power plant with a generation capacity of 2,313.5 megawatts, said the company in its filing to Saudi bourse Tadawul. 

The plant will also be designed with readiness for a future carbon capture unit, it stated.

Saudi Energy Company holds an effective 40% stake in the project, while Acwa Power will be a strategic player.

The contract covers the development, financing, construction, ownership and operation of the gas-fired power plant, as well as the expansion of a 380kV electrical substation, it stated.

The project’s contract duration is 31 years from the commercial operation date, it added.-TradeArabia News Service