Korea Electric Power Corp. clinched contracts to build and operate two gas-fired power plants in Saudi Arabia, marking its largest power generation project to date.
The South Korean state utility will develop two 1.9-gigawatt combined cycle facilities in Ruma and Nairiyah in partnership with Saudi Electricity Company and ACWA Power. The plants are scheduled to start operations by 2028.
The consortium secured a 25-year power purchase agreement with Saudi Power Procurement Company, which is expected to generate 4 trillion won ($3.1 billion) in sales for KEPCO. South Korean manufacturer Doosan Enerbility will participate in the construction phase, with potential earnings of 2 trillion won ($1.55 billion) from overseas joint exports.
The deal strengthens KEPCO’s foothold in the Middle East, where it already operates the Rabigh heavy oil plant and Jafurah cogeneration facility. The company is targeting additional opportunities in renewable energy, grid infrastructure and energy storage systems across the region.
The projects align with Saudi Arabia’s Vision 2030 strategy to diversify its energy mix beyond oil. For KEPCO, facing challenges in its domestic market, the Saudi expansion offers a crucial avenue for revenue growth.
