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GE Energy to Provide Power Plant Equipment to Saudi Electric Co. in $950 Million Deal.

ENERGY RESOURCE-14 December 2006-GE Energy to Provide Power Plant Equipment to Saudi Electric Co. in $950 Million Deal(C)2006 JeraOne - http://www.jeraone.com

GE Energy has signed three contracts with the Saudi Electric Company (SEC) worth in excess of $950 million to supply 23 F-class gas turbines and additional equipment for three power plants that will add 2,900 megawatts of capacity to the Kingdom's electricity grid.

The projects include 15 GE Frame 7FA gas turbine-generators for the Qurayyah Open Cycle Power Plant, a 1,907-megawatt project in Saudi Arabia's Eastern Province; four 7FA units for the Faras Power Plant Expansion, also located in the Kingdom's Eastern Province, totaling 509 megawatts; and four 7FA machines for the Riyadh Power Plant No. 8 Extension-III Simple Cycle Power Plant in Saudi Arabia's Central Province, totaling 491 megawatts.

Saudi Arabia's demand for electricity has been increasing at a rate of seven per cent or more a year, and the Industry and Electricity Ministry estimates that the Kingdom will require up to 20 gigawatts of additional power generating capacity by 2019.

In addition to the gas turbine-generators, GE will supply generator step-up transformers and main breakers, unit auxiliary transformers and ISO-phase busbars for each of the three plants. The scope of GE's contracts also includes technical advisory services, customer on-site training and performance testing.

Initially, the 7FA gas turbines will be used in simple-cycle, base load operation at all three plants, while the Qurayyah plant will have the option to be converted to combined-cycle in the future. Natural gas will be the primary fuel, with distillate oil as a backup, at all three plants.

"We are excited to be able to support our long-standing relationship with Saudi Electric Company as well as the continuing growth of Saudi Arabia," said Steve Bolze, President of Power Generation for GE Energy. "We are pleased that SEC has selected our F-class gas turbines, which have been well-proven in more than 17.5 million hours of commercial service worldwide, to meet the challenge for reliable and efficiently produced power."

The gas turbines will be manufactured at GE's facilities in Greenville, S.C. For the Qurayyah project, the first seven units will be shipped during the second half of 2007 and are scheduled to enter commercial operation by June of 2008. The remaining eight units will ship during the second half of 2008 and will enter commercial service by June of 2009.

The 7FA units for Faras and Riyadh PP8 will be shipped during the second half of 2007 and are scheduled to begin commercial operation by June of 2008.

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Publication:Energy Resource
Date:Dec 14, 2006
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