KEPCO to Pursue '5.5 Trillion' LNG Power Generation Project in Saudi Arabia

Taiba LNG Power Generation Project 추진... Bid Proposal Submission in November
Generation Capacity of 3600MW Class... Project Scale Estimated at 4 Billion USD
Largest Among KEPCO's Saudi Projects... Attention on Winning Possibility

Korea Electric Power Corporation Seoul Headquarters located in Jung-gu, Seoul.
[Photo by Yonhap News]

[Asia Economy Sejong=Reporter Lee Jun-hyung] Korea Electric Power Corporation (KEPCO) is advancing a liquefied natural gas (LNG) power generation project worth 5.5 trillion won in Saudi Arabia. The generation capacity is 3600MW, making it the largest project KEPCO has undertaken in Saudi Arabia.

According to comprehensive reporting on the 13th, KEPCO will submit a bid proposal to the Saudi government in November to build the Taiba LNG combined cycle power plant. Previously, KEPCO submitted a letter of intent (EOI) to participate in the Taiba power plant bid to the Saudi side in December last year. About two months later, the Saudi government sent a request for proposal (RFP) to 10 companies, including KEPCO, General Electric (GE) from the U.S., and Electricit? de France (EDF), which were deemed pre-qualified. The Saudi government plans to select the project operator in January next year.

The Taiba project is a large-scale project to build a 3600MW LNG combined cycle power plant in the Medina region of western Saudi Arabia. The generation capacity is equivalent to three large 1200MW nuclear reactors, and the project scale is estimated at 4 billion dollars (approximately 5.5 trillion won). It will be promoted as an independent power producer (IPP) project, where upon winning the contract, KEPCO will build the power plant and sign a 25-year power purchase agreement (PPA) with the Saudi government. This means the Saudi government is obligated to purchase electricity produced at the Taiba power plant for 25 years.

KEPCO is evaluated to have systematically accumulated know-how in constructing and operating large-scale power facilities through its power subsidiaries and group companies. In 2009, KEPCO won the contract for the construction of the 1204MW Rabigh heavy oil power plant in Saudi Arabia, and recently was selected as the preferred negotiator for the 600 million dollar (approximately 824 billion won) Jafurah cogeneration power plant project in Saudi Arabia.

Success in the Taiba project will also strengthen KEPCO’s position in the 12 trillion won Saudi nuclear power plant bidding competition. Saudi Arabia sent RFPs in May to four countries including Korea, China, France, and Russia to build two 1400MW nuclear reactors. It is widely expected that the Saudi nuclear power plant bidding will be a two-way competition between Korea and Russia.

This content was produced with the assistance of AI translation services.