Hajr Electricity responsible for Qurayyah Independent Power Plant in Saudi Arabia
ACWA Power, a leading developer, owner, and operator of power generation and water desalination plants, recently signed a share purchase agreement with Samsung C&T to acquire 4.99% of its shares in Hajr Electricity Production Company (HEPC) – the project company running the Qurayyah Independent Power Plant (IPP) in Saudi Arabia’s Eastern Province.
HEPC is currently majority owned by Saudi Electricity Company with a 50% stake, and through a holding company, the remaining 50% ownership is held by a consortium of ACWA Power.
The project was signed in 2011 and units commenced power delivery to the grid in 2013 – marking the project as one of the world’s largest IPP combined cycle gas-fired power projects to date. With a net capacity of 3,927 MW, Qurayyah IPP is considered one of the most efficient projects of its kind in KSA.
“The increase of equity participation in the Qurayyah IPP project is an indication of ACWA Power’s confidence in the Kingdom’s economy,” observed Paddy Padmanathan, Chief Executive Officer, ACWA Power.
The Qurayyah IPP project bid was a landmark tariff, 15.5% lower than the nearest bidder, delivering more than SR 1.9bn (US$ 506.4mn) in savings over 20 years to the economy of the Kingdom and saving more than 160mn cubic feet of natural gas per day.
