- Published 2026.11.09 02:51
To complete 331MW plant by 2029 and supply power and steam for 17 years
Team Korea joint entry with Doosan Enerbility and Korea Eximbank
Korea Electric Power Corp. (KEPCO) has signed a final contract with Saudi Arabia's state oil company Aramco for the construction and operation of the Jafurah Phase 2 cogeneration plant and the supply of power and steam. The deal gives KEPCO responsibility for key infrastructure at the Jafurah gas field, the largest shale gas field in the Middle East, further strengthening its position in the region's energy market.
KEPCO said on Nov. 8 that it signed the final contract with Aramco to sell electricity and steam produced at the Jafurah Phase 2 cogeneration plant. The project is a large-scale infrastructure development to build a 331-megawatt power plant near the Jafurah gas field, about 400 kilometers east of Riyadh, the Saudi capital.
The plant will also include facilities capable of producing about 465 tons of steam per hour. A special purpose company jointly established by KEPCO and Aramco will be responsible for operations. Once the plant is completed in June 2029, it will supply power and steam exclusively to Aramco for 17 years.
KEPCO expects to generate stable revenue of $1.4 billion, or about 2.1 trillion won (about $1.5 billion), over the period. Steam produced at the plant is essential for energy-intensive industrial processes such as gas extraction and processing. The approach produces power and steam at a single site to improve fuel efficiency and reduce operating costs.
The project also marks a concrete achievement in joint entry with Korean companies. Doosan Enerbility will handle plant construction, and the Export-Import Bank of Korea will provide financial support for the project.
In particular, Doosan Škoda Power, a subsidiary of Doosan Enerbility, will directly manufacture and supply steam turbines, a core component of the plant. KEPCO expects the project to generate about 1.2 trillion won (about $886 million) in overseas export effects for Korean companies.
The award is a follow-up expansion of the Jafurah Phase 1 cogeneration project (317MW), which KEPCO won through an international competitive bid in 2022. The successful execution of the first phase built strong trust with the client, leading to the sole award of the second phase.
The Jafurah gas field is the largest shale gas field in the Middle East, located in eastern Saudi Arabia. Since the 1,200MW Rabigh heavy oil power project in 2009, KEPCO has steadily expanded its presence in the Saudi power market with projects including the 2,000MW Sadawi solar plant and the 3,780MW Rumah 1 and Nairyah 1 gas combined cycle plants.
(Dollar figures are approximate, converted automatically at 1,000 won = $0.738, the rate on Nov. 9, 2026.)
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
