GE $950 Million Contract Adds 2,900 MW to Saudi Generation Capacity

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Researched by Industrial Info Resources (Sugar Land, Texas). Driven by the power needs of a fast growing population and economic and industrial development, Saudi Arabia’s demand for electricity is growing at a rate of 7% per annum. The country’s Industry and Electricity Ministry estimates that 20,000 megawatts of additional power generating capacity will be needed by 2019.

The three contracts just signed by the Saudi Electric Company (SEC) and GE Energy (NYSE:GE) (Fairfield, Connecticut) for the supply of 23 F-class turbines for three power plants will add 2,200 megawatts to the national grid when they come into commercial service in 2009.

The $950 million contract covers fifteen 7FA gas turbines for the 1,907-megawatt (MW) Qurayyah open cycle plant in the country’s Eastern Province; four 7FA units for the Faras power plant’s 509 MW expansion in the Eastern Province and four 7FA turbines for the 491 MW Riyadh plant No. 8 extension the Central Province.

GE will also supply generator step-up transformers and main breakers, unit auxiliary transformers and ISO-phase busbars for the three plants. The scope of the contract covers technical advisory services, customer on-site training and performance testing.

The turbines will be manufactured in Greenville, South Carolina. The first seven units will be shipped for the Qurayyah project in the second half of 2007 and are scheduled to enter commercial operation by June 2008. The balance of eight units will be shipped during the second half of 2008 to enter service by June 2009. The 7FA units for Faras and Riyadh will also be shipped during the second half of 2007 and are scheduled to go into commercial operation by June 2008.

In the initial phase of operation the turbines will be used in a simple cycle, base load operation at all three plants. 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 backup at all three plants.

Steve Bolze, president of power generation for GE Energy said, “We are pleased that SEC has selected 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.”

In the past, SEC has purchased more than 200 GE Frame 5, 6 and 7E gas turbines for projects in Saudi Arabia. The company was formed in 2000 by the merger between the country’s ten regional power companies. Currently, SEC distributes and supplies electricity to domestic commercial, industrial and agricultural customers throughout the country.

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