French utility company Engie (formerly GDF Suez) has reached financial close on the US$1.2bn Fadhili independent power project in Saudi Arabia.
The project is partially financed through US$950mn of non-recourse project finance debt provided by an international consortium of six banks: Export-Import Bank of Korea (Kexim), Islamic Development Bank, Sumitomo Mitsui Banking Corporation (SMBC), KfW Ipex-Bank, MUFG and National Commercial Bank, Engie confirms to GTR.
The Fadhili combined cycle gas power plant will be located in the eastern province of Saudi Arabia. Engie will build the plant in partnership with South Korean Doosan Heavy Industries & Construction for engineering, procurement and construction (EPC) and with German engineering group Siemens for the gas turbines supply.
With a capacity of 1,507MW, the power plant will produce the equivalent of the electricity consumption of 1.4 million people. It will also produce 1,447 tonnes of stream per hour and 768 tonnes of feed water per hour.
Electricity from the plant will be sold to Saudi Electricity Company (SEC) and steam and feed water to the Saudi Arabian Oil Company (Saudi Aramco) under 20-year purchase agreements. Engie will own 40% of the project, while and SEC and Saudi Aramco Power Holding Company will each hold 30% ownership.
“The technology used will ensure that the stringent emission requirements imposed on the project (less than 9 parts per million NOx) are respected. The scope of work will also include the construction of a 380kV substation to be transferred to SEC in 20 years for ownership, operation and maintenance,” Engie says in a statement.
Commercial operation is scheduled to begin at the end of 2019.