Abu Dhabi's Taqa joint venture project in Saudi Arabia reaches financial closing
New Jubail plant will provide power and steam for Saudi Aramco petrochemical complex
Dubai: The Abu Dhabi utility company Taqa has done the financial closing for a new steam and electricity cogeneration plant in Saudi Arabia. Taqa's partner in the project - located in Saudi Arabia's Eastern Province - is Japan's Jera Co.
Once built, the Najim Cogeneration Company will produce electricity and steam for a petrochemical complex located in Jubail, Saudi Arabia. It will supply 475MW of power and nearly 452 tonnes per hour of steam from advanced combined cycle gas fired technology for the Satorp Strategic Expansion petrochemical complex.
The deal with Satorp for the new plant was signed in Q1-2024.
The special purpose entity is owned by Taqa (51 per cent) and Jera (49 per cent) on a 25-year build, own, and operate basis (and extendable by five years on mutual agreement). The two will also undertake the operation and maintenance of the plant through an O&M special purpose entity.
The financial closing comes after Taqa and Jera entered a power and steam purchase agreement with Saudi Aramco Total Refining and Petrochemical Company (Satorp), a joint venture company owned by Saudi Aramco and TotalEnergies in March 2024.
The Satorp Strategic Expansion petrochemical complex is 'expected to house one of the largest mixed-load steam crackers in the GCC region'.
The Najim Cogeneration Company is 'our third generation project in Saudi Arabia and we will be developing an advanced cogeneration steam and power plant using the latest highly efficient J-Class gas turbine technology in partnership with JERA," said Farid Al Awlaqi, CEO of Taqa Generation division.
"Taqa is proud to take on a developer role as well as the operations and maintenance at the plant - two focus areas for capability expansion for Taqa."