A consortium led by Japan’s Sumitomo Corporation has secured a $3.7 billion contract to develop a major power and water facility in Qatar, as the Gulf state races to meet surging electricity and water demand driven by rapid economic and population growth.
Signed with Qatar’s state utility Kahramaa, the agreement will see Sumitomo partner with QatarEnergy, Qatar Electricity & Water Company (QEWC), and Luluah Sky Energy Holding Ltd to build the Ras Abu Fontas facility.
Once completed, the plant will supply 2,400 megawatts (MW) of electricity and 110 million gallons per day (MGD) of desalinated water, meeting nearly a quarter of Qatar’s power demand and one-fifth of its water needs.
The multi-phase project, scheduled to begin generating electricity by April 2028 and reach full operations by June 2029, is one of the country’s largest utilities investments to date.
The deal underscores Qatar’s push to bolster critical infrastructure and enhance supply resilience in line with its National Vision 2030.
Officials said the project would also integrate sustainable technologies to reduce emissions, enhance grid efficiency, and stimulate local job creation and innovation.
The project, which will be developed under a 25-year Power and Water Purchase Agreement (PWPA) with Kahramaa, will follow a Build, Own, Operate and Transfer (BOOT) model.
As part of this structure, the newly formed special-purpose company, Ras Laffan Power & Water Company, will handle all phases of the plant’s development, from construction to long-term operations.
QatarEnergy will hold a 45% stake in the company, with Sumitomo Corporation taking 40%, QEWC 10%, and Luluah Sky Energy Holding Ltd holding the remaining 5%.
Sumitomo will also take the lead in managing the construction and ongoing operations of the project.
The Ras Abu Fontas facility will be developed near the existing Ras Laffan Industrial City and will make use of advanced combined cycle gas turbine (CCGT) technology.
It will also include reverse osmosis (RO) systems for water desalination to enhance energy efficiency and environmental performance.
Kahramaa President Eng. Essa bin Hilal Al-Kuwari stated that the project is a milestone in Qatar’s utilities sector and will play a key role in meeting rising demand while aligning with the country’s clean energy goals.
The development is also expected to stimulate local supply chains and create job opportunities for Qatari nationals.
The agreement was signed in Doha in the presence of high-level officials from the Qatari government, QatarEnergy, and international stakeholders.
