Saudi Energy affiliate Al Morjan Two closes SAR 9.69 billion financing for 2,313.5 MW Rabigh 2 gas plant

Al Morjan Two Electricity Company, an affiliate of Saudi Energy Company, achieved financial close for the Rabigh 2 Independent Power Plant expansion project. Financing for the combined-cycle gas turbine facility totals SAR 9.69 billion.

The plant has a generation capacity of 2,313.5 MW. It is a combined-cycle power plant located in the Western Region of Saudi Arabia. The project covers the development, construction, ownership and operation of a combined-cycle gas-fired power plant.

The financing has a tenor of about 34 years. Funding came from a consortium of local, regional and international lenders, including Saudi Awwal Bank, Saudi National Bank, Alinma Bank and Riyadh Bank, alongside HSBC Middle East and Standard Chartered. The guarantees provided for the financing include a limited guarantee covering ACWA Power's share of the liquidity reserve and reserve account.

ACWA Power holds a 40% stake in the venture. Saudi Energy holds a 40% stake in the project.

The project scope includes financing and expanding a 380kV electrical substation. It also carries readiness for the construction of a carbon capture unit.

Construction works have commenced on the project, according to MEED Projects. A joint venture of Elsewedy Electric and Sinohydro has been working as the main contractor.

The full financial impact is expected to materialize upon the commencement of commercial operations in the second quarter of 2029.