GE Vernova wins turbine order for 3GW Qurayyah expansion in Saudi Arabia

Why Is the Qurayyah Expansion a Strategic Win for GE Vernova?

GE Vernova (NYSE: GEV) has secured a high-profile gas turbine supply order for Saudi Arabia’s ambitious Qurayyah Independent Power Plant (QIPP) expansion. Announced on May 28, 2025, the order includes three 7HA.03 and two 7HA.02 H-class gas turbines, to be supplied to Técnicas Reunidas and Orascom Construction. These companies are executing the Qurayyah project as part of a 50:50 joint EPC partnership in the Kingdom’s Eastern Province. With an installed capacity of 3 gigawatts (GW), the project is designed as a high-efficiency combined cycle power plant that is carbon-capture ready—an essential element of Saudi Arabia’s Vision 2030 energy transformation agenda.

This order reinforces GE Vernova’s standing in the Gulf as a technology partner of choice for large-scale power infrastructure. Importantly, it showcases the utility of advanced gas turbines in helping fossil-based power systems transition toward decarbonization. The deployment of GE Vernova’s 7HA-series turbines positions QIPP to deliver reliable, lower-carbon baseload electricity and to serve as a future platform for integrating carbon capture and hydrogen co-firing capabilities.

What Is the Project Scope and Who Is Involved?

The Qurayyah project expansion represents a significant milestone in Saudi Arabia’s gas-to-power roadmap. The 3 GW combined cycle configuration will enhance the Kingdom’s electricity generation capacity while maintaining operational efficiency and reducing emissions. The project client, Hajr Two Electricity Company, is a joint venture comprising ACWA Power, the Saudi Electricity Company (SEC), and Haji Abdullah Alireza & Co. Ltd. The long-term Power Purchase Agreement (PPA) was signed in February 2025 with the Saudi Power Procurement Company (SPPC), the country’s designated offtaker for utility-scale electricity.

By locking in a secure PPA with SPPC, the project ensures financial viability and regulatory certainty. Técnicas Reunidas and Orascom Construction, two well-established EPC players with extensive experience in Middle East infrastructure, will manage engineering, procurement, and construction responsibilities. GE Vernova’s role in the consortium is to deliver the turbine systems that will form the heart of the plant’s power island, with commissioning likely by 2028. The plant’s readiness for post-combustion carbon capture also gives it long-term flexibility in aligning with Saudi Arabia’s carbon neutrality goals by 2060.

Why Is Saudi Arabia Investing Heavily in Gas Power Right Now?

Saudi Arabia is in the midst of a deliberate and high-stakes transition away from oil-fired generation. The Vision 2030 framework lays out a clear plan to diversify the Kingdom’s economy, reduce its domestic oil consumption, and build an energy system that is resilient, low-carbon, and globally competitive. One of its core power sector goals is to derive 50 percent of electricity from natural gas and the remaining 50 percent from renewables by 2030. In that context, gas-fired combined cycle power plants like Qurayyah serve as the backbone for energy security and grid stability.

The logic behind this pivot is not just environmental but also economic. Using gas instead of crude oil in domestic power generation frees up additional barrels for export, contributing to fiscal revenues. Natural gas also emits significantly less carbon dioxide and particulate matter compared to fuel oil, helping Saudi Arabia comply with regional and global emissions standards. The Qurayyah expansion exemplifies this strategy, offering scalable, efficient baseload capacity that can later be decarbonized through technologies like carbon capture, utilization and storage (CCUS), or hydrogen blending.

What Does the GE Vernova Turbine Portfolio Bring to the Table?

The turbines being deployed at Qurayyah—three 7HA.03 and two 7HA.02 units—represent GE Vernova’s latest advancements in gas turbine technology. The 7HA.03 model is currently the company’s most powerful and efficient offering in the HA-class series. These turbines are optimized for combined cycle operation and are known for their high output, fast ramp rates, and capability to operate on a mix of fuels, including hydrogen blends. The 7HA.02 units complement the setup by offering proven reliability and integration ease in large-scale power stations.

According to GE Vernova’s President and CEO of Gas Power in Europe, Middle East and Africa, Joseph Anis, the Qurayyah order highlights Saudi Arabia’s strategic reliance on natural gas as a transitional fuel. He noted that the project leverages decades of collaborative success between GE Vernova, Técnicas Reunidas, and Orascom Construction. The inclusion of carbon capture readiness underscores GE Vernova’s commitment to future-proofing thermal assets. The company’s ability to offer integrated design, digital controls, and carbon capture interface solutions further reinforces its role as a one-stop partner for decarbonization-ready infrastructure.

How Deep Is GE Vernova’s Presence in Saudi Arabia?

GE Vernova has cultivated a long-term, multifaceted presence in Saudi Arabia. The company currently employs around 850 people in the Kingdom and has made substantial capital investments in facilities that support power generation, grid modernization, and industrial localization. Its Dammam-based GE Manufacturing and Technology Center (GEMTEC) plays a pivotal role in assembling and servicing gas turbines for domestic and export markets. The GE Saudi Advanced Turbines (GESAT) facility, also located in Dammam, focuses on manufacturing turbine modules and critical components.

In Khobar, the company operates an Integration Facility that delivers turnkey grid solutions. Additionally, GE Vernova runs the MENA Decarbonization Center of Excellence, a hub for research and implementation of next-generation clean energy technologies. The company’s remote Monitoring and Diagnostics Center provides real-time performance analytics for gas turbine fleets across the Middle East. These facilities are designed not only to support current projects like Qurayyah but also to fulfill the Vision 2030 mandate for talent development, industrial capability, and high-value exports.

What Is the Investment Sentiment Around GE Vernova Stock After the Qurayyah Deal?

Following the announcement of GE Vernova’s gas turbine order for the Qurayyah Independent Power Plant expansion, investor sentiment toward GE Vernova (NYSE: GEV) has shown cautious optimism. While the company’s stock has not posted a significant breakout, trading remained steady in the $93–$97 range over the past five sessions, supported by modest institutional inflows. Buy-side analysts interpret the Qurayyah deal as a strategically positive development, reinforcing the company’s strength in emerging markets and its ability to secure decarbonization-aligned infrastructure contracts post-spin-off from General Electric.

Market participants, particularly infrastructure-focused funds and ESG-aligned institutional investors, view this contract as a reaffirmation of GE Vernova’s hybrid business model that spans natural gas, renewable energy, and grid solutions. The deployment of 7HA.03 turbines—designed with carbon capture readiness and hydrogen co-firing potential—is seen as a forward-compatible asset that aligns with future regulatory frameworks around emissions in fossil-dependent regions. While the Middle East is not yet a primary growth driver for renewables, the region’s growing interest in gas-fired power plants with carbon capture integration gives GE Vernova a long-term runway for high-value deployments.

Technical sentiment indicates a neutral-to-bullish setup, with key support seen at $91 and resistance around the recent high near $98. Volume trends post-announcement have shown accumulation by institutional players, especially within clean infrastructure funds, which have been rebalancing portfolios amid sector rotation out of U.S. utilities and into global energy transition plays. On-chain ETF data reveals increased weightage of GEV in several active clean energy and global infra funds, suggesting a “Buy on Strategic Contract” posture among large players.

Retail investor sentiment has also leaned positive, with moderate chatter across investment forums highlighting GE Vernova’s long-term potential as a power infrastructure leader. However, concerns remain about cyclicality in global turbine demand, and the stock’s performance may continue to be range-bound unless accompanied by stronger revenue growth from maintenance contracts or expansion in grid and software services.

For medium- to long-term investors, analysts broadly recommend a “Buy” or “Accumulate on Dips” stance, particularly if the company can build on this momentum in GCC markets. Short-term volatility may persist due to macroeconomic uncertainties, but the company’s backlog growth, strategic localization, and ESG-aligned product mix offer defensible upside over a 12–18 month horizon. As of May-end 2025, consensus fair value estimates range between $104–$112, representing a potential upside of 10–15% from current levels, assuming no significant delays in major project milestones.

There is currently no direct FII/DII breakdown applicable for GE Vernova as a U.S.-listed company; however, sovereign wealth funds in the Middle East and major institutional holders like Vanguard, BlackRock, and State Street remain key stakeholders. Post-spin-off filings from Q1 2025 suggest net positive inflows into GEV, primarily from funds tracking the S&P Global Infrastructure Index and ESG-themed mandates.

What’s Next for Qurayyah and GE Vernova in the Middle East?

The Qurayyah expansion is expected to move into its engineering and civil works phase later this year, with turbine deliveries scheduled for 2026. Full commercial operation is anticipated by 2028, pending regulatory clearances and grid integration. Beyond Qurayyah, GE Vernova is well-positioned to participate in upcoming gas-to-power tenders in Oman, the UAE, and Qatar. The company’s integrated solutions—including digital control platforms and carbon capture readiness—make it a natural fit for regional utilities seeking to balance reliability with climate obligations.

Future revenue streams could include long-term maintenance agreements, performance upgrades, and digital optimization services for the Qurayyah fleet. As Saudi Arabia accelerates CCUS policy frameworks and clean hydrogen trials, the plant could be retrofitted to run on lower-carbon fuels, ensuring its long-term viability. GE Vernova’s localized manufacturing and service capacity give it a competitive advantage in delivering these upgrades cost-effectively while meeting local content requirements.