Contract award
Elsewedy and Sinohydro venture signs Rabigh 2 expansion EPC contract
By Staff Writer | 14 October 2026
A joint venture of Elsewedy Electric PSP and Sinohydro has signed the engineering, procurement and construction contract for the Rabigh 2 Independent Power Plant Expansion Project in western Saudi Arabia.
Elsewedy Electric PSP announced the signing on 13 October 2026. The contract was awarded by Al Mourjan Two for Electricity Company, a special purpose vehicle set up by Acwa Power and Saudi Energy to develop the project. Elsewedy describes the gas-fired combined cycle plant as a 2.3 GW facility and the development as having a total value of 2.2 billion dollars.
The scope
As EPC contractor, the joint venture is responsible for the full design, engineering, procurement, erection, construction, commissioning and performance testing of the plant, together with all associated civil works and the interconnection with the national grid. Elsewedy said the signing formally launches full scale execution of the facility under the joint venture's responsibility.
The plant is designed in an SGT6-5000F 2 (331) configuration. It will comprise six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines, supported by a bypass stack and diverter damper for simple cycle operation, six heat recovery steam generators, a cooling tower, and the mechanical, electrical, instrumentation and control balance of plant systems. Commercial operation is targeted for May 2029.
Work already under way
The signed contract follows work that started earlier. Elsewedy said construction has been proceeding under a previously issued limited notice to proceed and that the project has passed 39 per cent overall progress. It reported more than five million safe man-hours to date.
Dr Samir J Serhan, Chief Executive Officer of Acwa, said: "Rabigh 2 IPP Expansion is an important addition to Saudi Arabia's power system, providing the reliable and flexible generation capacity needed to support the kingdom's growing electricity demand."
He added: "At Acwa, we are proud to bring our development and operational expertise to this project and, together with our partners, remain focused on delivering it safely, efficiently, and on schedule to support the Kingdom's long-term energy and economic ambition."
Hesham Hegazy, Chief Executive Officer of Elsewedy Electric PSP, said: "Signing this EPC contract is a proud moment for our joint venture and a reflection of the trust our client has placed in our ability to deliver complex power infrastructure safely and to the highest international standards."
Peng Gang, President of PowerChina Mena, said: "This contract signing reflects the confidence our client has placed in the joint venture's technical capability and delivery track record."
The parties
Al Mourjan Two for Electricity Company is the project company formed by Acwa Power and Saudi Energy for Rabigh 2, which is being developed in the kingdom's western province. Elsewedy said the expansion will add a source of reliable capacity to the national grid, serving industrial, commercial and residential demand growth across the kingdom.