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The new combined cycle project would add 1,300 MW to the existing facility owned by state utility Saudi Electricity Co (SEC), Bemco said in a statement.
When completed in 2015, it will be the world's largest combined cycle plant, the company added.
SEC which has a current installed power capacity of 50,000 MW, plans to boost capacity to at least 80,000 MW by 2020 to meet power demand, growing by almost 8 percent annually.
Copyright Reuters, 2011