GDF Suez has signed a power purchase agreement (PPA) with Saudi Electricity for a proposed gas-fired power plant at the Riyadh independent power project (IPP).
GDF SUEZ will build the 1,730MW gas-fired power project along with Saudi Arabia's Aljomaih Holding and Japan's Sojitz Corporation.
Riyadh IPP is one of three independent projects in the country that will add 5,200MW to the domestic grid by 2015.
The project is expected to require an investment of about $2.1bn and Saudi Electricity will buy all of the plant’s output over a 20-year period under the PPA.
First power from the plant will be produced as early as May 2012 and the plant is scheduled for completion by March 2013.