Saudi Arabia’s Al Yamamah Steel Industries Co. has secured two major contracts worth a combined SAR 309.25 million ($82.4 million) from Indian multinational engineering firm Larsen & Toubro (L&T), the steel manufacturer announced in a statement.
The contracts involve the supply of steel towers for two ultra-high-voltage transmission line projects as part of Saudi Arabia’s ambitious grid expansion.
The first contract, valued at SAR 170.54 million, involves the supply of steel towers for the construction of a 500kV ultra-high-voltage line connecting the Central region to the Western region of Saudi Arabia.
The project is a key component in enhancing the country’s transmission infrastructure, enabling the movement of electricity across vast distances to meet growing demand, particularly in the industrial and residential sectors.
The second contract, valued at SAR 138.72 million, focuses on supplying steel towers for a 380kV ultra-high-voltage line between the Stara station and Wadi Aldawasir station in the Central region.
This project is also a key infrastructure upgrade aimed at improving power reliability and distribution efficiency within the Kingdom.
The contracts are part of Saudi Arabia’s broader effort to expand its transmission grid and support its rapidly growing energy needs, particularly as it invests heavily in renewable energy projects.
Saudi Arabia’s transmission network has been undergoing significant expansion. In 2023, the Kingdom’s transmission line length stood at 95,564 circuit kilometers (Ckm), with expectations to reach 106,356 Ckm by 2028.
The government’s vision to modernise its power grid is aligned with the Vision 2030 initiative, which focuses on diversifying the energy mix and increasing the share of renewable energy in the country’s power supply.
Several large transmission line projects are underway in Saudi Arabia. One of the most notable is the Aqaba-Tabuk High Voltage Direct Current (HVDC) line, a 500kV overhead transmission line running 227.79 Ckm from Aqaba Gulf Transition Station to Tabuk Converter Station. The project is expected to be operational by 2024 and will be operated by the Saudi Electricity Company (SEC).
Other major transmission projects include the Abu Hadriyah-Manifa line, Al Jillah-Dawadmi line, and the Buhairah-Tabouk line, all of which are key to enhancing the Kingdom’s grid stability and ensuring the seamless integration of renewable energy sources like solar and wind into the national grid.
The Saudi-Egyptian Electricity Interconnection project, which aims to link the power grids of the two nations, is set to be completed by mid-2025.
With a cost of around $1.8 billion, the project will enable the exchange of up to 3,000 megawatts of electricity between Saudi Arabia and Egypt.
Larsen & Toubro (L&T), the Indian engineering giant, has been rapidly expanding its footprint in the Middle East, particularly in Saudi Arabia. In July, L&T’s Power Transmission & Distribution (PT&D) business secured multiple contracts in the region, including a 380kV substation and overhead line project in Saudi Arabia and another 220kV substation project in the UAE.
While L&T did not disclose the specific contract values, the company classified these as “large,” falling in the range of INR 25,000 million to INR 50,000 million ($299 million to $598 million).
Al Yamamah Steel Industries has been positioning itself as a key supplier in Saudi Arabia’s infrastructure and energy sectors. In April, the company announced the start of commercial production at its expanded pipe factory in Jeddah, marking the completion of the first phase of its expansion plan.
The new facility is expected to boost the company’s production capacity, allowing it to meet the growing demand for steel products in the Kingdom.
Established in 2003, Al Yamamah Steel has grown into one of Saudi Arabia’s leading steel manufacturers, with a paid capital of SAR 300 million.
The company’s products play a critical role in supporting the Kingdom’s infrastructure projects, including those in the power, oil, and gas sectors.
