Fadhili Gas-Fired Combined Heat and Power (CHP) Plant, Saudi Arabia


Fadhili gas-fired combined heat and power plant is a co-generation power plant to be constructed in the Eastern Providence of the Kingdom near Fadhili (FGP), which is located 50km away from Jubail Industrial City in Saudi Arabia. Located adjacent to the Fadhili gas processing plant, the co-generation power plant will have an installed capacity of 1,507MW.

Saudi Aramco Power Holding Company and Saudi Electricity Company (SEC) hold 30% stake each in the project company, while ENGIE, which has been contracted to develop the plant on build, own, operate and transfer (BOOT) basis for a period of 20 years, holds 40% equity.

Construction on the project is expected to begin by the end of 2017, while operations are expected to begin from November 2019. The electricity generated by the plant will be equivalent to the consumption of 1.4 million people. The plant will also produce 1,447t an hour of steam and 768.8t an hour of feed water, which will be supplied to Saudi Aramco.

The project is expected to create employment opportunities for more than 4,500 local people.

Fadhili power plant make-up

The Fadhili combined-cycle power plant will be equipped with five SGT6-5000F gas turbines in addition to SGen6-1000A generators and SPPA-T3000 control system.

The natural gas required for the plant's operations will be supplied from the adjacent Fadhili gas processing plant.

The co-generation power plant will supply 400MW of electricity and steam to Fadhili gas processing plant, while the remaining 1,100MW will be supplied to SEC, for distribution to 1.1 million households across Saudi Arabia.

Contractors involved with the Fadhili co-generation power plant

"The project is expected to create employment opportunities for more than 4,500 local people."

Doosan Heavy Industries & Construction was awarded an engineering, procurement and construction (EPC) contract worth approximately $900m for the Fadhili power project in December 2016. The contractual scope includes offering services ranging from design to equipment manufacturing, installation and pilot operation at the plant.

ENGIE will work together with Doosan Heavy Industries & Construction for the EPC contract. The scope of work will include the construction of a 380kV substation, which will be transferred to SEC in 2018 for ownership, operation and maintenance.

Siemens was awarded a $400m-worth contract to supply five F-class gas turbines for the plant. The turbines are being manufactured at the Siemens Dammam Energy Hub (SDEH) facility located in the Middle East. The scope of the contract also includes supplying five generators and a control system, and advanced power diagnostics services.

Siemens, in association with ENGIE's affiliate Kahrabel FZE, will also offer maintenance services for the turbines for a period of 16 years.

Financing for the combined heat and power plant

The plant construction is estimated to be completed with a total investment of $1.2bn, as part of the SR50bn ($13.3bn) Fadhili gas extraction plant.

The financial closure for the construction of the power plant was achieved in January 2017. The project is partially financed through $950mn of non-recourse project finance debt by six banks including Export-Import Bank of Korea (Kexim), Islamic Development Bank, Sumitomo Mitsui Banking Corporation (SMBC), KfW Ipex-Bank, MUFG, and National Commercial Bank.

Details of Fadhili gas processing plant

Fadhili gas processing plant is expected to process up to 2.5 billion standard cubic feet a day (SCFD) of non-associated gas, including two billion SCFD of gas from Hasbah offshore gas field and 500 million SCFD of gas from Khursaniyah onshore gas field.

The plant will enhance the supply of natural gas to Saudi Arabia to up to 17bn SCFD by 2020, creating growth opportunities for steel, aluminium and downstream value-added industries in the country.

The plant will produce 1.5bn SCFD of sales gas, and 4,000 metric tonnes of sulphur a day through tail gas treatment. It will also supply 470 million SCFD of gas to the Fadhili co-generation power plant.