Cairo – Mubasher: Egypt’s petroleum ministry and Riyadh-based ACWA Power will finance the construction of a natural gas pipeline to operate an anticipated power plant in the Upper Egypt governorate of Luxor, sources familiar with the matter said.

The Saudi power and water plants’ developer is planning to build a 2,250-megawatt power plant in Luxor with up to $2.5 billion in investments, Alborsa News reported, citing the sources.

The gas pipeline will be established at a total cost of EGP 1.6 billion, the sources added.

ACWA Power is currently in talks to build a substation to transmit the generated power from the plant expected to commence operation in 2021/2022, the sources indicated.

In November, Egypt’s electricity ministry announced the signing of an agreement with ACWA Power to set up a new power plant in Upper Egypt.