French utility company Engie said it has won a major contract from Saudi Electricity Company (SEC) to build a 1,504 megawatt (MW) power plant at an estimated cost of $1.2 billion in the kingdom.

The contract for the Fadhili power plant was awarded by SEC in partnership with Saudi Aramco. Scheduled to be operational by the end of 2019, the Fadhili power plant will be owned 30 per cent by SEC, 30 per cent by Aramco and 40 per cent by private sector partners, it stated. The plant is part of the Fadhili gas project which is set to become a key component of the kingdom’s master gas system.