The joint venture will enhance Saudi Arabia’s energy infrastructure with carbon capture integration
Spanish engineering giant Tecnicas Reunidas and Egypt’s Orascom Construction have secured a $2.6 billion contract to expand a 3-gigawatt combined cycle gas-fired power plant in Saudi Arabia. The project, awarded as a 50-50 joint venture, will include the development of carbon capture infrastructure and the construction of a 380-kilovolt (kV) electrical substation.
Orascom announced the deal on Monday, highlighting its role in bolstering Saudi Arabia’s energy transformation. The expansion aligns with the Kingdom’s broader push for cleaner energy solutions and enhanced grid reliability.
For Tecnicas Reunidas, this contract adds to a growing portfolio of projects across the Middle East and beyond. The company has been actively securing high-value contracts, positioning itself for a significant financial boost. With its latest agreements, the Spanish firm expects to triple its net profit by 2026 compared to 2023. 
Investor confidence in Tecnicas Reunidas has surged, with its stock price climbing nearly 50% this year. The company is rebounding strongly following setbacks caused by a global slowdown in energy investments due to the pandemic and geopolitical disruptions.
This latest Saudi project reinforces Tecnicas Reunidas and Orascom’s presence in the region and underscores their role in advancing large-scale energy infrastructure. As Saudi Arabia accelerates its energy transition and industrial expansion, such strategic partnerships will play a crucial role in shaping the future of its power sector.
