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Winning US$3.3 Billion Contract for Thermal Power Plant in Saudi Arabia
Hyundai Heavy Industries
Winning US$3.3 Billion Contract for Thermal Power Plant in Saudi Arabia
  • By matthew
  • August 6, 2013, 04:23
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Lee Jae-seong, president of Hyundai Heavy Industries (front row left) signs a contract to construct Shuqaiq Thermal Power Plant with Saleh Hussein Al-Lawaji, chairman of the Saudi Electricity Company (front row right) in Riyadh, Saudi Arabia, August 5.
Lee Jae-seong, president of Hyundai Heavy Industries (front row left) signs a contract to construct Shuqaiq Thermal Power Plant with Saleh Hussein Al-Lawaji, chairman of the Saudi Electricity Company (front row right) in Riyadh, Saudi Arabia, August 5.

 

Hyundai Heavy Industries (HHI) announced on August 5 that it won a contract worth 3.7 trillion won from Saudi Electricity Company (SEC) to build Shuqaiq Thermal Power Plant in Saudi Arabia, which is the largest scale power plant construction project in that area to date. 

HHI will be in charge of generating 12,000 MW, one fifth of Saudi's total electricity. It already constructed thermal power plants in MARAFIQ (in 2007 producing 2750MW) and Riyadh (in 2010 producing 1730MW). Last year, it obtained an order for the project to construct a super large-scale power plant known as Jeddah South, with a capacity of 2,640MW, the same as that of the Shuqaiq Thermal Power Plant. 

In particular, winning a contract to construct another super large-scale power plant less than one year after winning an order for Jeddah South worth US$3.2 billion is considered to be extremely rare. Shuqaiq Thermal Power Plant is a 2,640MW heavy oil-fired supercritical pressure power project based on the SEC's medium-and long-term plan to expand power generation facilities.

Supercritical pressure boilers refer to boilers that can generate steam with supercritical pressure, exceeding the critical pressure (steam pressure in the critical state where liquids and gases cannot be differentiated).

The plant is scheduled to be built by 2017 on the Red Sea which lies about 135km north of Jizan City, situated in the southwest corner of Saudi Arabia. As the sole contractor, HHI will carry out all processes of the project on a turn-key basis, ranging from designing the plant to producing required equipment, constructing the plant itself, and operating test runs.