Egypt's Orascom wins $363m Iraq gas project

Orascom Construction Industries LSE: ORSD has formally signed the $363m contract to build a 1014 MW power station in Baija, Iraq.

The plant is togenerate power from six Siemens (NYSE:SI) 169 MW gas-fired units that Iraq bought in a package deal in 2008. The project is scheduled for completion within 21 months, reports Industrial Info.

The Baija project is part of the $15bn investment Iraq plans to make in the power sector through 2015 to increase installed generation capacity by 20000 MW to 27000 MW.

The additional generating power will consist of 13000 MW of gas-fired projects and 7000 MW of thermal power plants. Currently, power available on the grid is a bit more than 7000 MW but is expected to increase up to 9500 MW as new projects and upgrades are commissioned this year.

In 2011, peak demand reached 15000 MW, resulting in low availability and chronic blackouts.

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