Abu Dhabi’s renowned power and water company, Taqa, has achieved a significant milestone by securing a deal for a new project in Saudi Arabia. In a joint venture with Jera Co., Japan’s leading power generation company, Taqa will construct a greenfield industrial steam and electricity cogeneration plant in Jubail, located in Saudi Arabia’s Eastern Province. This development marks Taqa’s second major triumph in the Kingdom in recent months, reinforcing its position as one of the largest listed integrated utility companies in the Europe, Middle East, and Africa region.
The cogeneration plant, destined to become operational in 2027, is set to play a vital role in supporting the Amiral petrochemical complex. It will provide the facility with up to 475MW of power generation and 452 tons per hour of steam. The plant will utilize advanced combined cycle gas-fired technology, aligning with contemporary energy efficiency and environmental standards.
The agreement for this project, known as a ‘power and steam purchase agreement,’ has been signed with the Saudi Aramco Total Refining and Petrochemical Company, a collaborative venture between Saudi Aramco and TotalEnergies. This partnership underlines the growing synergies between major energy players in the region.
The Amiral petrochemical complex, expected to feature one of the largest mixed-load steam crackers in the Gulf region, will benefit immensely from the cogeneration plant. The facility will include state-of-the-art power and steam generation systems, alongside essential gas and water receiving systems and gas-insulated switchgear interconnections. Notably, the project also accommodates the potential future integration of a carbon dioxide capture plant and is capable of hydrogen co-firing, highlighting its forward-thinking design.
Ownership of the cogeneration plant will be divided between Taqa, holding a 51 percent stake, and Jera, with 49 percent. The plant will be developed and operated by a special purpose entity on a 25-year build, own, and operate basis, which can be extended by another five years through mutual agreement. Additionally, the operation and maintenance of the plant will be managed through a separate special purpose entity.
Farid Al Awlaqi, CEO of Taqa Generation, expressed confidence in the venture, stating, “The signing of the offtake agreements for the cogeneration power and steam project at the Amiral petrochemical facility demonstrates confidence in Taqa’s ability to deliver critical utilities effectively.”
This project represents a significant step in the evolution of the regional energy sector, showcasing the collaborative efforts of major industry players to meet growing energy demands while prioritizing sustainability and efficiency.
