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Korea Eximbank joins US$435 million financing for Saudi cogen plant
Combined heat and power facility part of Jafurah gas field development scheme
Michael Marray 1 Feb 2023

Export-Import Bank of Korea and Riyad Bank are providing US$435 million in debt finance for a 320-megawatt cogeneration plant in Saudi Arabia.

The project developer is Korea Electric Power Corporation (Kepco). Last September, South Korea’s Doosan Enerbility was awarded a turnkey engineering, procurement and construction (EPC) contract for the project.

The scope of work involves the supply, installation and construction of a combined heat and power (CHP) plant for Saudi Aramco’s Jafurah gas field, producing both electricity and steam.

The Jafurah Cogeneration Plant will be located approximately 400 kilometres east of the Saudi capital Riyadh. It is scheduled to be completed by the second half of 2025.

The Jafurah unconventional gas field is estimated to contain approximately 200 trillion cubic feet (tcf) of wet gas resources. It is located southeast of the Ghawar oil field, the world’s biggest conventional onshore oil field.

The project aims to provide natural gas for domestic purposes, and for feedstock to produce petrochemicals and blue hydrogen, in line with the Saudi Vision 2030 plan.

Doosan Enerbility is steadily solidifying its position in the Saudi Arabian market. It won a 1 trillion won (US$813 million) contract for the construction of a casting and forging facility in February 2022, and another 840 billion won contract for a seawater desalination plant last August.

As part of the Jafurah gas field project, Samsung Engineering has won a sizeable EPC contract for a gas processing plant while Hyundai Engineering has clinched a contract for gas field infrastrucure and sulphur recovery units.

Aramco has also awarded a contract to Lamar Holding to develop a desalination plant valued at US$693 million as part of the Jafurah gas field development scheme. The reverse osmosis facility includes a water distribution network.

In addition to Lamar Holding, local utility Mowah is also an investor. China’s Sepco Electric Power Construction Corporation will be the EPC contractor.  

Aramco has appointed Sumitomo Mitsui Banking Corp as financial adviser for the independent utility schemes serving the project. 

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