Saudi Electricity, Aramco award Engie $1.2 bln contract to develop Fadhili

Saudi Electricity Co. (SEC) said France’s Engie has won a contract to develop the Fadhili gas-processing project at a total value of $1.2 billion.

The facility is expected to kick-start commercial operations in December 2019.

Fadhili will include a 1,500-megawatt power plant, which will use 400MW of electricity to power the gas project and send the remaining 1,100MW to the domestic grid.

The Fadhili project aims to boost Saudi gas production capacity to more than 17 billion standard cubic feet per day by 2020, according to earlier news reports.

The plant will be 30 percent owned by Saudi Electricity, and 30 percent owned by Saudi Arabian Oil Co. (Saudi Aramco), while the remaining stake will be held by private sector partners. It will be financed through partners and other external sources.

Last July, Saudi Aramco had signed a contract with Saudi Electricity and France’s Engie to develop the Fadhili plant, which will produce both power and steam. A contract for work on offshore facilities went to India’s Larsen & Toubro, Argaam earlier reported.

France-based Engie is an electric utility company that operates in the field of distribution, generation, renewable energy, and natural gas.