Siemens Energy Secures $1.6 Billion Contract for Saudi Power Plants

Siemens Energy has been awarded a significant contract worth $1.6 billion to provide technology for two gas-fired power plants in Saudi Arabia, specifically Rumah 2 and Nairyah 2. These plants, located in the western and central regions of the country, are set to add 3.6 gigawatts of power to the national grid, which is sufficient to supply electricity to approximately 1.5 million homes.

Siemens Energy Secures $1.6 Billion Contract for Saudi Power Plants
Credit: ZAWYA

The Rumah 2 and Nairyah 2 power plants are expected to rank among the largest combined-cycle power plants globally. They will replace older oil-fired stations, leading to a reduction of CO2 emissions by up to 60% compared to traditional oil-based power generation methods. Furthermore, the design of these plants will incorporate advanced CO2 capture and storage technologies, aligning with Saudi Arabia’s long-term emissions reduction objectives.

Harbin Electric International has been designated as the EPC contractor for this project, which includes long-term maintenance agreements to ensure operational reliability over the next 25 years. Key components for the power plants will be manufactured at the Siemens Energy Dammam Hub, which is currently undergoing expansion to enhance local production capacity and support the energy sector in Saudi Arabia.

Siemens Energy will supply a range of equipment under this contract, including six SGT6-9000HL gas turbines, four SST6-5000 steam turbines, eight SGen6-3000W generators, and associated auxiliary equipment, with each site generating an estimated 1.8 gigawatts of electricity. This order further cements Siemens Energy’s established presence in Saudi Arabia’s Independent Power Producer (IPP) market, contributing significantly to the country’s modern power generation capabilities.

Building on the achievements of prior projects, such as Taiba 2 and Qassim 2—which together added 4 gigawatts to the national grid—Siemens Energy is poised to continue its role in local manufacturing expansion and infrastructure modernization within the energy sector. Ahmed ElSerry, Head of Gas Services Sales for the Middle East, stated that supplying critical technologies for the Rumah 2 and Nairyah 2 power plants directly supports Saudi Arabia’s energy transition and its goal of achieving net zero emissions by 2060.

He emphasized that manufacturing key components at the Siemens Energy Dammam Hub will further enhance local production capabilities and build expertise within the Kingdom, thus contributing to a more resilient energy sector. The Rumah 2 and Nairyah 2 plants are expected to be integrated into the grid in simple cycle mode by 2027, transitioning to full operation as combined-cycle power plants by 2028, according to ElSerry.

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