Siemens and Doosan win Shuaibah IWPP

Saudi Arabia’s Shuaibah Water and Electricity Company (SWEC) has awarded the turnkey contract for the construction of a power and desalination plant to a consortium of Siemens Power Generation and Doosan Heavy Industries & Construction Co. Ltd. The project is the largest independent water and power project (IWPP) in the world and will be commissioned in late 2009.

The Shuaibah plant will provide 900 MW of electricity to the national grid and 880 000 m3/d of fresh water for the cities of Mecca, Jeddah, Taif and Al-Baha. Located about 110 km south of Jeddah, it is the first IWPP in Saudi Arabia, and the first of a total of four planned major projects.

The g1.8bn ($2.14bn) order represents the largest single order that Siemens has posted to date in the Gulf region. Siemens’ scope of supply consists of three steam turbine generator units each rated at 400 MW, along with the associated electrical and instrumentation and control systems. Doosan will supply the desalination plant. The oil fired plant will be equipped with one of the most modern flue gas treatment systems in the world.

Saudi Arabia plans to implement a total of four IWPPs to increase installed generating capacity by 4500 MW and to provide an additional 2.2m m3/d of drinking water.

RasGas signs service agreement with GE

GE Energy and RasGas Company Limited have signed a multi-million dollar agreement calling for GE to supply a full range of services over a 25-year period for 22 gas turbines operating at the RasGas LNG production complex in Ras Laffan Industrial City, Qatar.

The 22 GE gas turbines are driving five compression trains totaling 20.7 million tonnes of LNG production per year and also are providing electric power for the LNG complex. Installation of the units started in 1997 and will be completed by 2008. The gas turbines include ten GE 7001EA units, nine GE 6001B machines and three GE 5002D units.

The GE contractual service agreement (CSA) includes supply of parts, repairs and field services for planned and unplanned outages for the gas turbines and associated equipment, as well as performance guarantees, outage planning inventory management support and training of local personnel.

Compression trains 1 and 2 are owned by Ras Laffan Liquefied Natural Gas Company , while trains 3, 4 and 5 are owned by Ras Laffan Liquefied Natural Gas Company (II). The GE service agreement also covers the ExxonMobil Al Khaleej Gas project.

More power for cement works

Finland’s Wärtsilä Corporation has won two contracts for power plants totalling 94 MWe associated with two cement works in Saudi Arabia. City Cement Co. has awarded Wärtsilä a turnkey contract for a complete 45.3 MWe power plant to be installed at a cement works near Riyadh in Saudi Arabia. The second power plant is for a new cement works at Najran in Saudi Arabia.

The City Cement plant will be equipped with six 20-cylinder Wärtsilä 32 diesel generating sets. The sets will each deliver 7550 kWe when running on heavy fuel oil. The first set will be operational in November 2006 and the plant will be completed in the first quarter 2007.

The 49 MWe Najran power plant is being installed by Nesma & Partners Contracting Co. Ltd. which awarded an EEQ (engineering and equipment supply) contract to Wärtsilä for seven 18-cylinder Wärtsilä 32 diesel generating sets in August 2005. The sets each have a power output of 7000 kWe while running on heavy fuel oil.

An important feature of these power plants is that they must deliver a high power output at high ambient temperatures, up to 50°C. In both cases, the power plants will supply electricity primarily to the cement works but will also serve the staff housing, water treatment plant, offices, workshops and laboratories.

Saudi Arabia is rapidly expanding its cement production capacity.

Services market set to grow

Large capacity additions, the growth of gas turbine-based power plants and gradual liberalization of the power sector are all expected to drive growth in the power plants services market in the Middle East North Africa region. According to market analysts Frost & Sullivan, revenues in this market are expected to reach $3.45bn in 2011, up from the current $2.29bn.

Countries in the Middle East are increasingly looking to the private sector to undertake power plant maintenance activities and there are opportunities for plant service companies to form partnerships with national utilities. Market participants will also have to create strategic alliances with consortia that are bidding for new power plant orders in order to tap the potential of the market.

Iran Fajr 2 EPC awarded

The Nikan consortium comprising Alstom along with local firms Kayson Group, Ameron Ofogh and Niroo Tavan has been awarded the EPC contract by National Petroleum Company to build the Fajr 2 power and water plant in Bandar Imam, Iran.

The 33-month contract, worth an estimated g200m ($239m), is for the construction of a 640 MW gas turbine plant and a reverse osmosis desalination facility. The plant will also supply steam to the petrochemical industries at Bandar Imam.

Tenders, Bids & Contracts

Bahrain: Alstom was the only bidder for the $130m Riffa power station rehabilitation project and is likely to sign the formal contract with Bahrain Ministry of Electricity and Water in the coming weeks.

Kuwait: Tenders for the EPC contract involving the construction of the 1500 MW power plant at Subiya are due to be issued by the Ministry of Electricity and Water. Ten companies and consortia have submitted their pre-qualification applications for the $2300 million Al Zour North power and water project. Parsons Brinckerhoff Group is acting as consultant on the project.

Oman: The 700 MW power package for the Barka Phase 2 independent water and power project (IWPP) is currently under bidding after seven groups of developers were invited to submit commercial and technical proposals.

Qatar: Kahramaa has issued a Request for Proposal (RFP) for the Facility B development contract, the first independent water and power project (IWPP) at the new Mesaieed complex. The plant will have a power generation capacity of 2000 MW and a desalination capacity of 182 000 m3/d. Pre-qualified developers are Sumitomo, Marubeni, Mitsubishi, Mitsui, AES, International Power with Chubu, Malakoff with NPC, Iberdrola, Electricite de France and Suez.

Kahrama awarded various substation projects that will serve the West Bay region of Qatar. Two 66/11 kV substations went to German contractor Siemens and another seven to Areva.

Saudi Arabia: Marafiq has issued a revised Request for Proposal (RFP) for the Jubail independent water and power project (IWPP) contract. Developers will have until the end of April 2006 to submit their new proposals. Marafiq is expected to shortlist bidders on June 28 2006.

Saudi Electricity Company has announced a multitude of new projects with a combined value in excess of $20bn over ten years. These includes the phase II 2400 MW IPP at Yanbu, the 1725 MW power plant at Muzahimiyah, Jubail IWPP Phase 3 and several other expansions including Qurayyah and Rabigh facilities.

United Arab Emirates: Commissioning has started on Jebel Ali Station L phase 1. Fichtner is carrying out the consultancy contract for the Jebel Ali Station M Phase I, which will produce 2000 MW of electricity and 264m l/d of desalinated water.

This was compiled by market intelligence company, Sentinel. For further information, visit: https://sentinel-me.com