On January 25, 2026, a $1.4 billion energy contract was signed in Saudi Arabia. Saudi Electricity Company has officially signed an agreement for the expansion of Rabigh 1 Combined Cycle Gas Power Plant, a 1179 MW power plant aimed not only at easing electricity pressure in western provinces, but also at balancing energy demand and emission reduction commitments in Saudi Arabia due to its reserved carbon capture interface. The signing of this agreement marks the beginning of a more advanced technological and long-term planning phase for Saudi Arabia in promoting energy structure transformation and power security capabilities.

Huge investment and technological roadmap

The total contract value of the project is approximately 5.33 billion Saudi riyals (equivalent to approximately 1.4 billion US dollars), adopting the high-efficiency technology route of combined cycle gas turbines and proactively reserving interfaces for carbon capture and storage facilities. This design enables the power plant to provide stable and powerful power support while also having the hardware foundation for future low-carbon transformation, reflecting Saudi Arabia's strategic consideration of balancing current demand and long-term sustainable development in the energy sector.

Key roles and long-term commitments

The agreement was signed between Saudi Electricity Procurement Company as the main purchaser of electricity and Saudi Electricity Company, which holds 100% equity in the project company. The project scope covers the entire chain of power plant development, financing, construction, ownership, and operation. More importantly, the agreement period is 25 years, calculated from the date of commercial operation of the power plant. This long-term agreement structure provides stable revenue expectations for the project and consolidates the commitment of Saudi Electricity Company as a reliable pillar of national power supply, ensuring long-term stable power supply. Keywords: Middle East Latest News, Middle East News Latest News

Strategic significance and regional impact

The expansion project of Rabigh 1 directly responds to the growing electricity demand in the western province of Saudi Arabia, and its 1179 MW installed capacity will significantly enhance the power supply capacity and stability of the regional power grid. The project is a concrete measure for Saudi Arabia to implement its "2030 Vision" on energy transformation and sustainable development goals by introducing advanced technologies that are efficient and have the potential to reduce emissions. It not only ensures energy security in the short term, but also paves the way for Saudi Arabia's possible future carbon reduction targets from the infrastructure level, which has important regional demonstration significance.Editor/Gao Xue