Oil & Gas Saudi Arabia signs $1.5bn deal for gas-powered plants By Eva Levesque June 25, 2024, 10:19 AM Saudi Aramco Saudi Aramco's Haradh gas plant. Saudi Arabia's two new power stations will provide four gigawatts of electricity combined Agreement with Germany’s Siemens Two power stations to be built Electricity for three million homes Saudi Arabia has signed a $1.5 billion agreement with Siemens Energy of Germany to supply technology for two new gas-fired power plants. The Taiba 2 and Qassim 2 power stations in the west and central regions of the kingdom will produce four gigawatts of electricity combined – enough to power around three million homes. The plants will be constructed “over the next few years”, Siemens said in a statement, and will be connected to the grid in 2026. NewsletterGet the Best of AGBI delivered straight to your inbox every week The deal includes a 25-year contract to maintain the sites. China Energy International Group is Siemens’ engineering, procurement, construction and contracting partner on the projects. The new plants will allow Saudi Arabia to cut carbon emissions by up to 60 percent compared to oil-fired equivalents and will be compatible with a strategy to construct CO2 capture and storage facilities. It plans to switch to renewables and gas-fired power plants as part of a strategy to reach net zero by 2060. Aramco awards Sinopec $1.4bn gas pipeline contract Saudi summons energy to unearth geothermal potential Saudi Aramco targets two US natural gas producers Saudi Arabia – the world’s largest crude exporter and the fourth biggest crude consumer behind the US, China and India – burns 3.7 million barrels of oil a day. To support growing domestic gas demand and bolster energy infrastructure, the government is investing $10 billion in upgrading its master gas system. “The new gas-fired power plants will provide reliable energy supply and contribute to the sustainable and future-oriented development of the country,” said Karim Amin, a member of the managing board of Siemens Energy.
