Riyadh - Mubasher: Saudi Electricity Company (SEC) has penned an energy conversion agreement (ECA) valued at SAR 5.33 billion with the Saudi Power Procurement Company (SPPC) to purchase electricity generated from the Rabigh 1 expansion power plant.

The agreement covers a large-scale combined cycle gas turbine (CCGT) power plant designed with readiness to build a carbon capture unit, according to a bourse filing.

Located in Saudi Arabia’s Western province, the Rabigh 1 expansion project will have a total production capacity of 1.17 gigawatts (GW).

The agreement was signed on 21 January 2026 and includes the development, financing, construction, ownership, and operation of the gas-fired power plant.

Meanwhile, the project agreement holds a duration of 25 years from the plant’s commercial operation date.

SEC has an effective 100% shareholding in the project company, while SPPC signed the agreement in its capacity as the principal buyer of electricity.

The financial impact of the project is expected to reflect on SEC’s results starting from the second quarter (Q2) of 2027 onwards.

On 27 October 2025, SEC signed a power purchase agreement (PPA) with SPPC to develop a 600-MW Samtah solar PV power plant in southwestern Saudi Arabia.

Meanwhile, during the first nine months (9M) of 2025, SEC registered 4.57% lower net profits at SAR 11.58 billion, compared to SAR 12.14 billion in 9M-24.