Korean energy solutions provider Doosan Enerbility announced Tuesday that it has signed a 130 billion won ($90.4 million) contract to convert an oil-fueled power plant in Saudi Arabia to run on natural gas.
Under the agreement with Saudi Arabia's state-run Power and Water Utility Co. for Jubail and Yanbu — known as Marafiq — Doosan Enerbility will supply key components for gas power generation at Yanbu 2 Power Plant, on the west coast of the country.
Doosan will also support test operations after the conversion. The project is scheduled for completion by 2028.
Yanbu 2 Power Plant is a major power source for Yanbu Industrial City, Saudi Arabia’s second-largest industrial complex, which also includes King Fahd Industrial Port — the largest petrochemical export outlet in the country.
The project is expected to reduce carbon emissions by approximately 25 percent without compromising the plant’s 825-megawatt output, while also contributing to a reduction in the overall carbon intensity of industrial activities in Yanbu.
“Fuel conversion is gaining attention as a cost-effective and lower-carbon power solution, as it reuses a significant portion of existing infrastructure and minimizes plant downtime,” said Sohn Seung-woo, CEO of Doosan Enerbility’s power service business group.
“We are committed to delivering high-quality solutions on schedule, ensuring a stable electricity supply to the Yanbu industrial complex.”
According to Doosan Enerbility, Saudi Arabia is expected to order approximately 1.4 gigawatts of fuel conversion projects annually by 2027.
Building on its experience in leading fuel transition projects in countries such as Chile and Vietnam, Doosan Enerbility is positioning itself to win more fuel conversion contracts in Saudi Arabia.
Additionally, the company has been expanding its presence in Saudi Arabia's rapidly growing power generation industry, with up to 6 gigawatts of new power generation capacity expected to be added to the country’s power grid annually through 2028.
Over the past five years, Doosan Enerbility has secured projects in Saudi Arabia worth more than 6.7 trillion won, including an 890 billion won contract signed in March for a 1,800-megawatt combined-cycle gas plant located 150 kilometers northeast of Riyadh, the country's capital.
forestjs@heraldcorp.com
