International law firm Simmons & Simmons has advised Harbin Electric International (HEI), one of China's largest power engineering groups, on the negotiation of turnkey EPC contracts for the Rumah II and Nairyah II greenfield combined cycle gas-fired power projects in Saudi Arabia.
These landmark projects are set to enhance the Kingdom’s power generation capacity with high-efficiency and environmentally sustainable solutions.
The Rumah II and Nairyah II projects, located approximately 150 km north of Riyadh and 200km south of the Kuwait border, were awarded by the Saudi Power Procurement Company (SPPC) to a consortium comprising The Abu Dhabi National Energy Company PJSC (TAQA), Japan Energy for a New Era (JERA), and Al Bawani Water & Power.
With a combined installed capacity of 3.6 GW and a total investment of approximately $3.6 billion, the projects will utilise advanced Siemens combined cycle gas turbine (CCGT) technology marking a further significant step in the Kingdom’s effort to upgrade its power generation capacity with a mix of gas-fired and renewable energy projects.
David Blumental, Partner at Simmons & Simmons, commented: “It has been a pleasure to support HEI in these important projects. We look forward to the smooth implementation of the contracts and we are confident that HEI will deliver the projects on time and according to the agreed technical specifications.”
The Rumah II and Nairyah II projects and similar gas-fired CCGT projects are a key part of Saudi Arabia’s broader energy strategy, which includes integrating advanced renewable energy technologies, enhancing grid stability through battery energy storage systems (BESS), and promoting a diversified and sustainable energy mix in line with Vision 2030.
Steven Kaye, Partner at Simmons & Simmons, added: “The scale and complexity of these projects required a collaborative approach across jurisdictions and disciplines. Our team worked diligently to safeguard HEI’s interests, addressing critical aspects such as compliance with environmental, health, safety (EHS), and ESG standards. These projects are a testament to Simmons’ ability to deliver innovative solutions for large-scale infrastructure challenges.”
The Simmons team was led by David Blumental, partner and head of the firm’s Energy and Infrastructure practice in Asia with support from Steve Kaye, a partner in the firm’s Asia dispute resolution practice focusing on energy and infrastructure and construction disputes together with senior energy and infrastructure associate Andrew Russell with additional support from Janis Ling in Asia and Middle East construction disputes partner Niall Clancy.