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Siemens Energy Secures $1.6bn Deal to Power Saudi Arabia’s Future

Siemens Energy has secured a $1.6bn contract to supply technologies for Saudi Arabia’s Rumah 2 and Nairyah 2 gas power plants. These facilities, located in western and central regions, will add 3.6GW to the national grid, powering 1.5 million homes.

Collaborative Efforts and Long-Term Reliability

Harbin Electric International serves as the engineering, procurement, and construction contractor for this significant project. The agreement includes extended maintenance contracts to ensure the plants’ operational reliability until 2049.

Key components will be manufactured at Siemens Energy’s Dammam hub, currently expanding to boost local production capacity. Replacing old oil-powered plants, Rumah 2 and Nairyah 2 will reduce CO₂ emissions by up to 60%.

Designed to accommodate advanced CO₂ capture and storage technologies, the plants support Saudi Arabia’s emission reduction goals. They will connect to the grid in simple cycle mode in 2027, transitioning to full combined-cycle operation the following year.

Siemens Energy’s supply scope includes six SGT6-9000HL gas turbines, four SST6-5000 steam turbines, eight SGen6-3000W generators, and auxiliary equipment. Each site will generate 1.8GW of electricity, strengthening Siemens Energy’s position in Saudi Arabia’s independent power producer market.

Supporting Saudi Arabia’s Energy Transition

Ahmed El-Serry, head of Siemens Energy Middle East gas services sales, stated: “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.” He added that manufacturing critical components locally strengthens production capabilities and builds expertise within the Kingdom, contributing to a more resilient energy sector.

In March 2025, Siemens Energy also secured collaboration with Rolls-Royce to support a small modular nuclear reactor project. This partnership highlights Siemens Energy’s commitment to pioneering innovative energy solutions in Saudi Arabia.

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