Korea Electric Power Corp (Kepco) has secured a key contract to develop the second phase of Saudi Arabia's Jafurah cogeneration power plant, expanding its presence in the Middle East's growing energy sector, reported Korea Times.

The state utility said it had signed power and steam purchase agreements with Saudi oil giant Aramco for the construction and operation of the project, while also finalising an engineering, procurement and construction (EPC) contract with South Korea's Doosan Enerbility.

The project involves the construction of a 331-megawatt cogeneration plant capable of producing around 465 tonnes of steam per hour. Commercial operations are expected to begin by June 2029, stated the report.

Under a 17-year agreement, the facility will supply electricity and steam to Aramco and is expected to generate about 2.1 trillion won ($1.4 billion) in revenue over the contract period, Kepco said.

The award follows Kepco's successful bid for the first phase of the Jafurah cogeneration project, a 317-MW plant secured in 2022 and scheduled for completion this month.

The project will be operated through a special-purpose company jointly established by Kepco and Aramco. Doosan Enerbility will carry out construction work, while the Export-Import Bank of Korea will provide financing support. Kepco will oversee operations, saikd the Korea Times report.

The utility said the project is expected to create around 1.2 trillion won in export opportunities for South Korean companies, it added.