Doosan Enerbility bags $115 million Saudi thermal power plant contract

Doosan Enerbility clinched a 150 billion won ($115 million) deal to build a steam turbine and power generator in the biggest thermal power plant project in Saudi Arabia.

Doosan Enerbility's production plant in Changwon, South Gyeongsang [DOOSAN ENERBILITY]

Doosan Enerbility clinched a 150 billion won ($115 million) deal to build a steam turbine and power generator in the biggest thermal power plant project in Saudi Arabia.

Under the contract with Speco-3, the ordering party of the project, Doosan will supply a 650 megawatt steam turbine and a generator for the Taiba 1 integrated cycle power plant and the Qasim 1 combined cycle power plant.

The Taiba 1 plant is located around 200 kilometers (124 miles) north of Jeddah while Qasim 1 is situated some 200 kilometers northwest of Riyadh.

Both plants are expected to be operational by 2027. They are projected to enhance electricity generation efficiency in Saudi Arabia as part of the country's energy plan, Doosan Enerbility said Monday.

"We are expanding our contracts in overseas gas turbine markets, including projects in the Middle East and Asia," said Sohn Seung-woo, head of Doosan Enerbility's power service. "We will strengthen our target for Saudi Arabia as the country is expected to order more than 15 gigawatt power plants in the next five years."

Doosan Enerbility shares rose 5.42 percent to close at 16,720 won on Monday.

BY SARAH CHEA [chea.sarah@joongang.co.kr]