KEPCO Secures $1.4B Contract for Saudi Aramco’s Jafurah Gas Project

Key Facts

1South Korea’s KEPCO won a $1.4 billion deal to build and operate Phase 2 of the Jafurah cogeneration power plant.

2The facility will produce 331 MW of electricity and 465 tons of steam per hour by June 2029.

3The plant is expected to supply electricity and steam to Saudi Aramco for 17 years.

In a move that underscores Saudi Arabia's ambitions in the unconventional gas sector, South Korea’s KEPCO has won a $1.4 billion contract to build and operate Phase 2 of the Jafurah cogeneration power plant. The facility is designed to produce 331 MW of electricity and 465 tons of steam per hour by June 2029. Under the terms of the deal, the plant will supply these essential utilities to Saudi Aramco for a period of 17 years.

This project is a critical component of Aramco’s $100 billion development plan for the Jafurah field, positioning the company to compete with global gas giants like QatarEnergy, which recently announced major expansions in its North Field. Per market data, this contract strengthens KEPCO’s footprint in the Middle East energy infrastructure market, capitalizing on the sustained demand for high-efficiency cogeneration facilities in industrial hubs.

Investors should monitor Saudi Aramco (2222.SR), which stood at 27.45 SAR at close June 4, 2026, and KEPCO’s ADRs (KEP). Looking ahead, the economic calendar features key inflation data from major economies, which could influence financing costs for large-scale energy infrastructure projects currently under development in the region.