AES has owned a 55% equity interest in the Ras Laffan project, which consists of a 756MW combined cycle gas plant and a 40MIGD (Million Imperial Gallons per Day) desalination facility, since 2003.
Ras Laffan has a 25-year power and water purchase agreement with the Qatar General Electricity and Water Corporation, which expires in 2029. Through this transaction, AES is also selling its interest in an associated operations company, and its rights under a related technical service agreement.
Paul Hanrahan, president and CEO of AES, said: “We’ve been proud of the performance of Ras Laffan, one of the first Independent Power Producers in Qatar, and are pleased to have reached an agreement with our partner, the Qatar Electricity and Water Company.”
The transaction is subject to customary purchase price adjustments and approvals, and is expected to close during the second half of 2010.
