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Doosan Enerbility secures $1.5B deals for power plants in Saudi Arabia

Published: 13 Mar. 2025, 11:02 Updated: 13 Mar. 2025, 18:10

SARAH CHEA
[email protected]

Doosan Enerbility's production plant in Changwon, South Gyeongsang [DOOSAN ENERBILITY]

Doosan Enerbility has sealed two deals worth $1.5 billion to build combined cycle power plants in Saudi Arabia.

The deals include a $774 million agreement for the Rumah No. 1 project and a $770 million agreement for the Nairyah No. 1 project, both aiming to construct 1,800-megawatt combined cycle power plants in northeastern Saudi Arabia, the Korean company said in a regulatory filing on Thursday.

Doosan Enerbility inked the deals with a consortium led by Korea Electric Power Corp. (Kepco), a developer of the projects that inked a power purchase agreement with the state-run Saudi Power Procurement Company (SPPC).

Doosan will oversee the engineering, procurement and construction (EPC) of the projects, covering the entire process from design to material supply, installation and commissioning. Construction is scheduled for completion on May 31, 2028.

When it's finished, the Kepco consortium is planning to sell the electricity to SPPC for the next 25 years.

"The latest deal, made in the midst of growing energy demand in the Middle East region, proves Doosan's construction capabilities and competitiveness on the global stage," said Lee Hyeon-ho, head of Doosan Enerbility's EPC business. "We will do our best to achieve a stable electricity supply in Saudi Arabia."

The energy produced by power plants in the Middle East is estimated to grow by 6 gigawatts every year to reach 123.2 gigawatts in 2030, according to data from market tracker Mordor Intelligence.

Kospi-listed Doosan Enerbility shares closed at 25,850 won on Thursday, 1.5 percent down from the previous session.

BY SARAH CHEA [[email protected]]