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Middle East Update

Kuwait expands power network

Siemens Power Transmission and Distribution (PTD) has received a s70 million order from the Ministry of Energy in Kuwait which will allow the Kingdom to expand electricity supplies for the municipality of Jahra, situated to the west of Kuwait City. Commissioning is scheduled for February 2007.

Under the contract, Siemens will set up a turnkey 300/132/11 kV transformer substation as an important nodal point in Kuwait’s high voltage network. The scope of supply for this turnkey transformer substation includes high voltage gas insulated switchgear (GIS), comprising 15 bays on the 300 kV voltage level and 26 bays for the 132 kV voltage level. The 11 kV switchgear will include 25 bays.

The order also encompasses four 300 MVA power transformers, four 45 MVA shunt reactors and three 30 MVA transformers. Siemens is also supplying all the control and protection equipment consisting of local control, a conventional control room and solid state protection and monitoring systems.

Transformer substations for UAE

As part of the programme to expand the power supply network in the United Arab Emirates, the Dubai Electricity and Water Authority (Dewa) has awarded a contract for six transformer substations for the 132 kV and 11 kV voltage levels.

Under the s50 million turnkey contract, Siemens Power Transmission and Distribution will supply 132 kV GIS and 11 kV GIS for the six projects. It will also supply and install 50 MVA power transformers, control and protection equipment, network control centres and telecommunications facilities.

As one of the world’s fastest growing regions, the Emirate of Dubai is experiencing constant growth in power demand, which calls for investment in its power supply network. The number of 132 kV substations has increased in recent years from 34 to 60.

Contracts signed to complete Shoaiba

An Alstom-led consortium has won a s627 million contract with Saudi Electricity Company to add three generating blocks to the Shoaiba power plant, making it the largest power plant in the Middle East.

Under its part of the contract, worth s560 million, Alstom will build the final three 400 MW units of the 11-unit steam power plant, increasing the total power output to more than 4400 MW. Alstom will design, supply, install and commission the entire power plant, including boilers, steam turbines generators and the complete balance of plant and systems for the three units while Alstom’s consortium partner, Saudi Archirodon Construction, will carry out all civil works. The boilers are designed to burn both crude and heavy oil, and use Alstom’s low NOx tangential burners to reduce emissions.

Taweelah B achieves financial closing

Sheikh Dhiyab Bin Zayed Al Nahyan, chairman of Abu Dhabi Water and Electricity Authority, has signed the Financial Facilities Agreement for the Taweelah B independent water and power project (IWPP).

The Dh11 billion investment deal was won earlier this year by a consortium including Marubeni Corporation and JGC both of Japan, Powertek of Malaysia and BTU Power Company of the US. The banks and financial institutions involved in the financing of the project include Japan Bank of International Cooperation (JBIC), Abu Dhabi Commercial Bank, National Bank of Abu Dhabi, First Gulf Bank, National Bank of Qatar, Bayerische Landesbank, BNP Paribas, Calyon, HSBC Middle East, KFW, Mizuho, Sumitomo Mitsui Banking Corporation, Standard Chartered Bank The Bank of Tokyo ” Mitsui, Ltd and Royal Bank of Scotland.

Sheikh Dhiyab said the project was the biggest electricity and water private project in the region in terms of investment cost and power output.

EPC contracts for GCC grid

Saudi Arabia’s deputy minister for electricity, Dr Saleh Alawaji has said that the engineering, procurement and construction (EPC) contracts for the GCC grid will be awarded this summer. Tender documents were issued in February and the bids were expected in April/May. Evaluation contract awards will be made in August 2005.

The Dh4.36 billion ($1.189 billion) first phase of the Gulf interconnection grid is scheduled to become operational by mid-2008. Phase one will link Kuwait, Saudi Arabia, Bahrain and Qatar, while phase two will link Oman and the UAE. In the third phase, the two systems will be linked. Once complete, the grid will serve as the main gateway for a pan-Arab grid, it can be connected to Europe and Africa and enable the GCC countries to export power,” added Alawaji.

While phase one will cost Dh4.36 billion, the estimated costs of phases two and three are Dh1.1 billion and Dh502.7 million, respectively.

The development costs of the GCC grid will be shared by all six GCC states in proportion to reserve capacity savings. The governments of the six states will be responsible for providing their share of the necessary capital in the form of either equity or debt.

Advisers selected for Hidd

Bahrain’s Ministry of Finance & National Economy has appointed BNP Paribas, the UK’s Mott McDonald and Freshfields Bruckhaus Derrger, also of the UK, as financial, technical and legal advisers on the brownfield water and power project at Hidd.

The IWPP will involve the selected developer acquiring the existing Hidd complex, which has a generating capacity of 1050 MW; and adding 60 MIGD of desalination capacity. The request for proposals will be issued this summer.

Jordan begins first CCGT plant

With the addition of a heat recovery steam generator and steam turbine to the Rihab station, Jordan has begun operating its first combined cycle power plant. The project is owned by the Central Electricity Generating Company (Cegco).

The HRSG will utilise the exhaust heat from two gas turbines, which run on diesel, to increase the station’s capacity from 200 MW to 300 MW. The two gas turbines are expected to run on natural gas from the Arab gas pipeline by the end of the year.

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