ACWA Power SPV Launches $2.2 Billion Rabigh 2 IPP Expansion Project
What happened
A special purpose vehicle, established by ACWA Power and Saudi Energy, launched the Rabigh 2 Independent Power Plant (IPP) Expansion Project in Saudi Arabia. Elsewedy Electric PSP, in partnership with Sinohydro, secured the $2.2 billion engineering, procurement, and construction (EPC) contract for the 2.3 GW facility. The project will utilize six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines.
From tradearabia.com
Why it matters
The contract represents a major gas-fired combined-cycle development in the region. The project's execution will increase national energy capacity and infrastructure investment in Saudi Arabia. The scope of work includes full design, construction, and interconnection with the national grid.
From tradearabia.com
Who's involved
- SiemensSupplier of the six SGT6-5000F gas turbines and two SST-5000 steam turbines.
- ACWA PowerSaudi utility major that established the special purpose vehicle for the project.
- Saudi ArabiaLocation of the Rabigh 2 Independent Power Plant Expansion Project.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- SiemensSpeculative
Siemens could see a direct revenue gain from the contract award for the eight large gas turbines.
- ACWA PowerSpeculative
ACWA Power could gain direct revenue through its ownership stake in the special purpose vehicle.
- Saudi ArabiaSpeculative
Saudi Arabia might see increased economic activity and demand due to the expanded national energy capacity.
Keep exploring
The entities involved
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Siemens
German multinational conglomerate company
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ACWA Power
Saudi power and water utility company