Saudi power growth continues

GE Energy has announced more than $1 billion of new power development contracts in Saudi Arabia following its agreement for the Marafiq power and desalination project, located in Jubail Industrial City of Saudi Arabia's Eastern Province.

Now, GE has also entered into a second project agreement for the Riyadh Power Plant No.9 with the Saudi Electricity Company.

For this 660 MW project, GE plans to provide twelve Frame 7EA gas turbines, which are scheduled to be shipped during the second half of 2007 with the units expected to enter commercial operation between February and June of 2008. Primary fuel for the expansion project is crude oil.

These latest deals follow a December announcement for three contracts with the Saudi Electricity Company for the Qurayyah, Faras and Riyadh Power Plant No. 8 Extension worth some $950 million.

Saudi Arabia’s electricity use has been increasing at a rate of about 7% annually and the Industry and Electricity Ministry estimates that the Kingdom will require up to 20 GW of additional power generating capacity by 2019.

GE, part of an EPC consortium that also includes Hyundai Heavy Industries and Société Internationale de Déssalement, is to supply four combined-cycle power blocks including twelve Frame 7FA gas turbines for the 2,740 MW Marafiq project.

Equipment for the Marafiq project would be shipped from the end of February 2008 through to the end of January 2009. Block 1 is scheduled to enter commercial service during the second quarter of 2009, block 2 in the third quarter of 2009, block 3 during the fourth quarter of 2009 and block 4 during the first quarter of 2010. Primary fuel is natural gas, with distillate oil as a backup.

The new facility is to be owned by Suez-Tractebel, Gulf Investment Corp, and Arabian Company for Water and Power Projects with 20% each, 30% by the Marafiq utility company and 5% by both the Saudi Electricity Company and Saudi Public Investment Fund.

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Saudi power growth continues