Energy Sector Growth: Major Contract Awarded for Power Plant Expansion

Saudi Arabia continues to reinforce its energy infrastructure through high-value international partnerships, further advancing the Kingdom’s economic diversification goals.

In a significant development, a consortium consisting of Spain’s Técnicas Reunidas and Egypt’s Orascom Construction has secured a $2.6 billion contract to expand a 3-gigawatt combined-cycle gas-fired power plant. This expansion is part of a broader strategy to meet growing national energy demands and ensure a more efficient, reliable power supply.

The project reflects the Kingdom’s ongoing commitment to attracting global expertise and fostering cross-border collaboration in the energy sector. Beyond this contract, Saudi Arabia has recently signed a series of major cooperation agreements with international partners across energy, infrastructure, and industrial development—including with several prominent Italian firms.

Italian companies are increasingly contributing to strategic sectors such as renewable energy, hydrogen development, and infrastructure engineering. These initiatives form part of a shared vision focused on technological innovation, sustainability, and long-term economic growth.

Through these partnerships, Saudi Arabia aims not only to enhance its energy production capabilities but also to position itself as a hub for advanced technologies and a model for integrated, future-ready infrastructure.

The expansion of the power plant, along with growing European and Mediterranean collaboration, demonstrates the strength of the Kingdom’s international outreach and the mutual benefits these alliances can deliver.