Siemens Energy Wins $1.6 Billion Contract for Gas Power Plants in Saudi Arabia

Siemens Energy has secured a major $1.6 billion contract to provide critical technologies for two new gas-fired power plants in Saudi Arabia. The Rumah 2 and Nairyah 2 plants will play a key role in supporting the country’s energy strategy.

A Boost to Saudi Arabia’s Power Capacity

Saudi Arabia will locate the Rumah 2 and Nairyah 2 plants in its western and central regions. Together, these plants will add 3.6 gigawatts (GW) of power to the national grid, providing energy to about 1.5 million homes. This expansion will help meet Saudi Arabia’s growing demand for clean and reliable energy.

The new plants will replace older, inefficient oil-fired stations, reducing CO2 emissions significantly. They are set to cut emissions by up to 60% compared to traditional oil-based power generation. This move aligns with Saudi Arabia’s commitment to reducing emissions and achieving net-zero by 2060.

Siemens Energy’s Contribution to the Project

Siemens Energy will manufacture key components for the plants at its Dammam Hub in Saudi Arabia. The hub is expanding to improve local production capabilities and support the country’s energy sector. Siemens Energy will supply six SGT6-9000HL gas turbines, four SST6-5000 steam turbines, and multiple generators, contributing to a generation capacity of approximately 1.8GW per plant.

The project includes long-term maintenance agreements, ensuring the plants’ operational reliability for the next 25 years. Siemens Energy’s involvement strengthens its position in the Saudi Independent Power Producer (IPP) market. The company has already contributed to other major projects like Taiba 2 and Qassim 2.

Advancing Saudi Arabia’s Energy Transition

This project marks a significant step in Saudi Arabia’s energy transition. Siemens Energy’s technologies will help meet the country’s rising electricity demand while reducing carbon emissions. Additionally, the plants are designed to integrate future CO2 capture and storage technologies, supporting Saudi Arabia’s long-term sustainability goals.

Saudi Arabia plans to integrate the Rumah 2 and Nairyah 2 plants into the national grid in 2027, initially operating in simple-cycle mode. The plants will transition to full combined-cycle operations by 2028. These developments will boost Saudi Arabia’s energy resilience and contribute to the region’s clean energy future.