Mitsubishi Heavy Industries (MHI) is to develop a heavy crude oil-fired thermal power generation and desalination plant in Shuqaiq, on the southwest Red Sea coast of Saudi Arabia.

The 1,020 MW plant will consist of three 340 MW steam turbines, heavy crude oil-fired boilers and generators. The reverse osmosis (RO) desalination plant will have capacity to produce 216,000 m3 of desalinated drinking water per day.

The order, placed by the Shuqaiq Water and Electricity Company (SqWEC), will see construction begin in June, and first commercial operations by the end of April 2010.

SqWEC is a special-purpose company composed of Public Investment Fund (PIF), Saudi Electricity Company (SEC) and the consortium established by ACWA Power, Mitsubishi Corp and Gulf Investment Corp (GIC).

The plant will supply electricity and water to Water & Electricity LLC (WEC) of Saudi Arabia under a 20 years power and water offtake agreement.

MHI will be in charge of plant engineering, manufacturing, construction, installation and commissioning. Mitsubishi Electric Corp will supply the generators.