SIEMENS Energy has been awarded a $1.6-billion project to provide key technologies for two Saudi gas-fired power plants, Rumah 2 and Nairyah 2, located in the country's western and central regions.

These plants will add 3.6GW of power to the national grid, enough to supply around 1.5 million homes.

They will replace aging oil-fired stations, reducing CO2 emissions by up to 60 per cent compared to traditional oil-based power generation.

Siemens Energy Dammam Hub will manufacture core components for the power plants, with each site generating approximately 1.8 gigawatts of electricity.

This order strengthens Siemens Energy's presence in Saudi Arabia's Independent Power Producer (IPP) market and solidifies its role in delivering a significant share of modern power generation.

Harbin Electric International is the EPC contractor for the project, which includes long-term maintenance agreements to support the plants' operational reliability over the next 25 years.

"Supplying key technologies for the Rumah 2 and Nairyah 2 power plants directly supports Saudi Arabia’s energy transition and its goal of achieving net zero emissions by 2060," remarked Ahmed ElSerry, Head of Gas Services Sales, Middle East.

"By manufacturing critical components at our Siemens Energy Dammam Hub, this project further strengthens local production capabilities and builds expertise within the Kingdom, contributing to a more resilient energy sector," he noted.

The Rumah 2 and Nairyah 2 will initially be integrated into the grid in simple cycle mode in 2027, transitioning to full operation as combined-cycle power plants by the following year, he added.