Saudi Arabia Invests $1.4 Billion in Rabigh 1 Expansion Project

Saudi Arabia is making a significant move to bolster its energy infrastructure with a massive $1.4 billion (SAR 5.3 billion) investment in the Rabigh 1 Expansion project. This strategic initiative is marked by the signing of a crucial Energy Conversion Agreement (ECA) to develop a new 1,200 MW power plant, reinforcing the Kingdom’s commitment to meeting its growing energy demands and advancing its energy transition strategy.

The agreement was finalized between the Saudi Electricity Company (SEC) and the Saudi Power Procurement Company (SPPC). The execution of this ambitious project has been awarded to a consortium of Elsewedy Electric PSP and Siemens Energy, who will manage the development under a full turnkey engineering, procurement, and construction (EPC) contract.

Project Specifications and Impact of Rabigh 1 Expansion

Located in the city of Rabigh, approximately 135 km north of Jeddah, the Rabigh 1 Expansion will function as a Combined Cycle Gas Turbine (CCGT) power plant. This expansion is set to play a pivotal role in strengthening the power supply for the country’s Western Province.

The plant is expected to generate enough electricity to meet the annual needs of around 500,000 residential units. This substantial increase in power capacity will support ongoing industrial growth, urban expansion, and broader economic development across the Kingdom.

Energy Supply and Framework for Rabigh 1 Expansion

The newly signed ECA establishes a 25-year framework for energy purchase, which will commence upon the plant’s commercial operation. This long-term agreement ensures a stable and reliable source of electricity, contributing significantly to the nation’s energy security.

The facility is designed with carbon capture readiness, a forward-thinking feature that aligns directly with Saudi Arabia’s strategic emissions reduction roadmap and its long-term vision for a more sustainable energy future.

Scope of Work and Technology in Rabigh 1 Expansion

The consortium’s responsibilities are comprehensive, covering the complete engineering, procurement, construction, installation, and commissioning of the plant. This includes all balance-of-plant systems, electrical infrastructure, instrumentation, control systems, and civil works.

Technologically, the plant will utilize a high-efficiency multi-shaft configuration centered around three Siemens Energy SGT6-5000F gas turbines. Each turbine will be paired with an SGen6-1000A air-cooled generator and supported by heat recovery steam generators and a steam turbine generator. Furthermore, the project will integrate advanced digital-enabled monitoring systems to ensure high efficiency, operational flexibility, and reliability while meeting guaranteed output and emissions targets.