KEPCO Secures Jafurah Phase 2 CHP Project in Saudi Arabia, Expects 2.1 Trillion Won in Revenue

Korea Electric Power Corporation (KEPCO) has secured the second phase of the Jafurah combined heat and power (CHP) plant project in Saudi Arabia, continuing its efforts to expand in the Middle Eastern power market.

On June 3, KEPCO announced that it had signed a Power and Water Purchase Agreement (PWPA) with Aramco, the Saudi state oil company, for the second phase of the Jafurah CHP project. In addition, the company finalized an agreement with Doosan Enerbility for the construction of the power plant.

This project involves the construction of a CHP facility with a power generation capacity of 331 megawatts (MW) and the ability to produce approximately 465 tons of steam per hour.

The plant is scheduled for completion in June 2029 and will supply electricity and steam to Aramco for 17 years. KEPCO expects to generate approximately 2.1 trillion won (about USD 1.4 billion) in revenue over the duration of the project.

The Jafurah Phase 2 project is a follow-up expansion to the Phase 1 CHP project, which is set for completion at the end of this month. Previously, in 2022, KEPCO won the Phase 1 project, which has a capacity of 317 MW, through an international competitive bidding process.

KEPCO explained that it succeeded in winning the Phase 2 contract on its own, leveraging the operational experience and business capabilities gained during the execution of the Phase 1 project.

This project will be operated through a special purpose company (SPC) jointly established by KEPCO and Aramco. Doosan Enerbility will handle the plant construction, Korea Eximbank will provide financial support, and KEPCO will be responsible for operations.

KEPCO also stated that this contract is expected to create opportunities for domestic companies to expand overseas, with the total value estimated at approximately 1.2 trillion won.

KEPCO has steadily expanded its business base in the Saudi power market. It began with the Rabigh heavy oil-fired power plant project in 2009, followed by the Jafurah Phase 1 CHP project in 2022; the Sudair solar project and the Luma 1 and Nairiyah 1 gas combined cycle projects in 2024; and the Dawadmi wind power project in 2025, further solidifying its presence in the region.

Winning the Jafurah Phase 2 contract demonstrates that KEPCO’s ability to reliably execute energy infrastructure projects in Saudi Arabia is being recognized, accelerating the company’s expansion of its power business in the Middle East.

This content was produced with the assistance of AI translation services.