ACC, National Grid ink SAR 145 mln power supply deal for Rabigh plant

Arabian Cement Co. (ACC) inked on Wednesday a SAR 145 million contract with National Grid Co., which will be required to supply the cement producer with 49 megawatts of electricity at its Rabigh plant.

Under the agreement, ACC will develop the project designs and provide raw materials required by the power transmission company. ACC said it will pay for the contract from a SAR 400 million loan that it received last February from the Saudi British Bank (SABB).

The cement maker said it will pay the associated costs and SAR 16 billion towards the expansion of its high-voltage transmission plant.

The project is scheduled for completion in 36 months, while financial impact will be reflected on results in 2018.

National Grid is a wholly-owned subsidiary of Saudi Electricity Company (SEC).