Photo via OilPrice
South Korea's state-run Korea Electric Power Corp. (KEPCO) has secured a $1.4 billion contract with Saudi Aramco to design, construct, and operate a cogeneration power plant supporting Phase 2 of the massive Jafurah gas development in Saudi Arabia. According to OilPrice, the Jafurah project represents one of the world's largest gas investments at an estimated $100 billion in total capital expenditure.
The cogeneration facility will generate 331 megawatts of electricity while producing approximately 465 tons of steam per hour—both essential for Aramco's downstream operations. KEPCO's scope includes building the plant and operating it for a 17-year period beginning in June 2029, demonstrating the long-term value partners see in the Korean utility's technical capabilities and operational experience.
For Dallas-area energy companies and service providers, KEPCO's success underscores the global competition for major infrastructure contracts in oil and gas. The deal reflects how international players are winning significant work in Saudi Arabia's energy transition projects, which could influence opportunities for U.S. and regional firms seeking partnerships or subcontracting roles on mega-projects.
The Jafurah cogeneration award follows an increasingly competitive landscape in Saudi Arabia's energy sector, where multiple nations vie for large-scale contracts. The project's timeline through 2029 positions KEPCO for sustained revenue and demonstrates continued investment in gas infrastructure despite global energy sector shifts.