KEPCO Secures $1.4B Saudi Cogeneration Project at Jafurah Gas Field

South Korea's state-owned utility, Korea Electric Power Corp. (KEPCO), has secured a significant $1.4 billion contract with Saudi Aramco. The agreement involves KEPCO undertaking the construction and operation of Phase 2 of the Jafurah cogeneration power plant in Saudi Arabia. This facility is a crucial component of the broader Jafurah gas project, an ambitious undertaking estimated to require total investments of $100 billion. The Jafurah field is central to Saudi Arabia's strategy to expand its natural gas production and domestic energy supply, reducing reliance on oil for power generation and freeing up crude for export. KEPCO's specific role in this development is to build a 331-megawatt (MW) cogeneration facility. This plant will also have the capacity to produce approximately 465 tons of steam per hour. Construction is slated for completion by June 2029. Following its operational launch, the facility is contracted to supply electricity and steam to Aramco for a period of 17 years. The project underscores South Korea's continued expertise in large-scale energy infrastructure development and its role in global energy projects. For Saudi Arabia, the cogeneration plant is vital for providing reliable power and steam to support the substantial processing and operational needs of the Jafurah unconventional gas field, which aims to significantly boost the Kingdom's gas output.