Marubeni and Taqa finalise contracts for Saudi Aramco power and water project
Japan's Marubeni and Abu Dhabi National Energy Company (Taqa) have signed the water and energy conversion agreements and reached financial close for the Tanajib power/steam and desalination plant
Japan’s Marubeni and Abu Dhabi National Energy Company (Taqa) have signed the final contracts and reached financial close for the project to develop a cogeneration power and water desalination project for Saudi Aramco.
The Tanajib cogeneration power and steam component will have a power capacity of 940MW and a steam capacity of 1,084 tonnes per hour of steam. The desalination plant will have a capacity of 5.25 million imperial gallons a day (MIGD).
Marubeni and Taqa signed a water and energy conversion agreement for the greenfield industrial facility on 15 September, according to sources close to the scheme. Financial close for the project was reached on 15 October.
Energy & Utilities reported in February 2020 that the Marubeni/Taqa consortium had received a conditional letter of award from Saudi Aramco for the project.
The consortium will also develop supporting infrastructure, including pipelines, to connect the desalination and cogeneration plants to end users.
A special purpose vehicle (SPV) has been established to develop and operate the plant, with the Taqa and Marubeni consortium holding a 60 per cent stake and Saudi Aramco holding the remaining 40 per cent.
The developer consortium will operate and maintain the plants for a period of 20 years.
“Taqa is pleased to partner with Marubeni and Saudi Aramco on a project of such strategic importance to the kingdom. The Tanajib facility will utilise Taqa’s expertise in delivering efficient power and water projects, as well as further strengthening our capabilities in operations and maintenance through a 40 per cent stake in the O&M company,” Farid al-Awlaqi, Taqa’s group executive director of generation, was quoted in a press release.
“Taqa has made a firm commitment to expand its generation capacity by up to 15GW internationally by 2030 and this project demonstrates the progress we are making on this while also expanding out existing footprint in Saudi Arabia,” Al-Awlaqi added.
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