South Korea's Doosan Enerbility has announced that it had signed a contract worth KRW837 billion ($556 million) for the second phase of the Jafurah Combined Heat and Power Plant in Saudi Arabia in partnership with Korea Electric Power Corp (Kepco) and Saudi oil giant Aramco.

Once operational, the facility is expected to generate 330 megawatts (MW) of electricity and produce 465 tonnes of steam per hour to support operations at the nearby gas field, reported Business Korea.

As per the deal, Doosan Enerbility said its Czech subsidiary, Doosan Skoda Power, will supply the steam turbine for the project.

The award follows the company's participation in the first phase of the Jafurah cogeneration project in 2022 and adds to a series of power-sector contracts secured by Doosan Enerbility in the Middle East in recent years, stated the report.

"We are pleased to continue our involvement in the Jafurah project through the second phase," Lee Hyun-ho, head of Doosan Enerbility's Plant EPC Business Group, said in a statement. The company expects demand for large-scale power projects in the Middle East to remain strong, he added.

Last year, the Korean group had secured several major contracts in the region, including a gas-fired power plant project in Qatar and the Rumah 1 and Nairyah 1 combined-cycle gas power plants in Saudi Arabia.

Under this deal, Kepco is participating as the business developer and operator, overseeing project development and operation. It will deliver the project as an EPC contractor, handling the entire process, including design, equipment supply, installation, construction, and commissioning.

The Jafurah CHP Plant Phase 2 will be built near the Jafurah gas field, 400 km east of capital Riyadh. The project aims for completion by 2029.

Once finished, it will supply 330MW of electricity and 465 tons of steam per hour to the nearby gas field.

The main equipment, steam turbines, will be manufactured and supplied by Doosan Skoda Power, a subsidiary of Doosan Enerbility.