E.ON starts work on Siberian combined-cycle power project

E.ON has started work on the construction of two new combined-cycle gas turbine units at its Surgutskaya GRES-2 power plant in Siberia.

The two units will add 800 MW to the existing power plant, taking its total capacity to 5600 MW.

The new highly efficient gas turbines will become operational in December 2010, making the Surgutskaya thermal plant one of the highest capacity power stations in the world. E.ON will invest approximately €800m ($1.25bn) in the project.

This will form part of E.ON’s approximately €2bn Russian investment programme, which aims to expand electric power capacity from 8630 MW to 11 030 MW by the end of 2011.

The Surgutskaya GRES-2 power station is situated in the Tyumen region of Russia. With a capacity of 4800 MW, the plant provides electricity for around 40 per cent of the region’s population.

Malaysian firm to build the Gulf’s first coal fired power plant in UAE

The United Arab Emirates has signed a deal worth up to $2bn for Malaysia Mining Corp (MMC) to build the Gulf’s first coal fired power plant.

Gulf states Saudi Arabia, Oman and Bahrain have all studied the possibility of building coal fired power plants as they struggle with rising power demand and gas shortages.

Analysts observing the deal said that coal plants would make economic sense, as it was cheaper to import coal than keep back gas exports to burn for power.

The 1000 MW plant will be built in the northern emirate of Ajman, UAE state news agency WAM reported on Thursday, citing a member of Ajman’s ruling family.

MMC will finance construction and operate the plant for 20 years, during which time part of the profit will go to Ajman. Construction will take 40 months.

Black & Veatch assess potential wind farm in Mongolia

Black & Veatch is conducting an environmental and social impact assessment for a potential 50 MW wind farm development in Mongolia.

The project team includes experts from the company’s Russia, UK and US office locations who specialize in environmental assessment, wind energy and geographical information systems.

The study will be completed this year and is funded by the European Bank for Reconstruction and Development, and the International Finance Corporation. The potential site is approximately 40 miles from Ulaanbaatar, the capital of Mongolia, with about 1m residents.

Jordan government sells power distribution companies

Jordan’s Kingdom Electricity Company is to buy the government’s stakes in Electricity Distribution Company (Edco) and Irbid District Electricity Company (Ideco) in a deal worth $104m.

Edco was 100 per cent owned by the government while Ideco was 55.4 per cent state-owned. Kingdom Electricity is owned by JD Energy & Infrastructure and United Arab Investors, both local, and Kuwait’s Privatization Holding Company. It won the right to buy the stakes in the two state-owned power distribution companies in 2007.

Three companies are responsible for electricity distribution in the kingdom. Edco operates in the east and south of the country and the Jordan Valley, while Ideco operates in the northern part.

Tunisia to build first GT26-based CCGT power plant

Alstom has been awarded a €335m ($534m) turnkey contract, by Société Tunisienne de l’Electricité et du Gaz (STEG) for the construction of a 400 MW combined-cycle power plant (CCGT).

The CCGT power plant will be constructed at Ghannouch, in the Gabes region, in southern Tunisia.

Under the terms of the contract, Alstom will supply a fully integrated turnkey power plant, composed of one KA26 combined-cycle unit, integrating in-house core plant components: one GT26 gas turbine, one heat recovery steam generator, one steam turbine, one TOPGAS turbogenerator and the ALSPA distributed control system.

The Ghannouch project will be the third power plant constructed by France’s Alstom for STEG in Tunisia.

Saudi Arabia plans $12bn projects

Saudi Arabia has planned more than $12bn worth of water and powerprojects that will supply an additional 2.24m cubic metres of water per day and 2750 MW of power.

The country is also set to privatize key government-owned assets and expects the total capital and operation investments value of desalination privatization projects to hit $43bn over the next 20 years, according to Fehied Al Sharif, chairman of the state Privatization and Restructuring Team.

•••

Azerbaijan: Azerbaijan, Turkey, Georgia, Iran and Russia are in talks to join their power grids. The project may open the way for the sale of electricity to Europe.

Belarus: President Alyaksandr Lukashenka has established the Nuclear Energy Department within the Energy Ministry to address issues of formulating and implementing state policy in the area of nuclear power engineering.

Iran: The Energy ministry has issued permits for building 46 power plants with a total capacity of 31.164 GW in build-operate-ownership (BOO) schemes and five other power plants with total capacity of 4.267 GW in build-operate-transfer (BOT) schemes.

Kuwait: Four new electricity-generating units are to be activated by the end of July providing the country with 240 MW of additional electrical power, including the third and fourth units at the Sabiya Power Plant and 35 MW at Western Doha Power Generating Plant.

Qatar: Nexans has been awarded an order worth €80m ($126m) from the Qatar General Electricity and Water Corporation. Nexans will supply engineering, production, installation and commissioning services for 161 km of High Voltage and Extra High Voltage underground power cables (132 kV and 220 kV). The scheduled completion date is January 2010.

Russia: Siemens and the Russian engineering company E4 Group have signed an agreement of intent on the implementation of future joint projects in Russia, The signatories of the agreement were Siemens AG’s CEO Peter Loscher, President of Siemens Russia Dietrich Meller, Chairman of the Board of Directors of E4 Group Mikhail Abyzov, and E4 Group’s CEO Pyotr Bezukladnikov.

Saudi Arabia: Saudi Electricity Company (SEC) is expected to sign an SR6bn ($1.6bn) corporate loan facility by late July as part of its expansion drive to meet demand for power and water in the kingdom.

Syria: Indian state-run equipment maker Bharat Heavy Electricals has received a contract worth more than 20.8bn rupees ($485m) for a 400 MW thermal power project. The order entails design, engineering, manufacture, supply, erection and commissioning of equipment.