Argentina Fills Power Gap with Two Siemens 830-Megawatt Plants

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Researched by Industrial Info Resources (Sugar Land, Texas). Turnkey contracts for two 830-megawatt (MW) power stations have been signed by Siemens Power Generation (NYSE:SI) (SPG) (Munich, Germany) to construct in Argentina. The stations will add 1,660 megawatts to the country’s existing generating capacity, which now stands at 24,000 megawatts. The total investment value (TIV) in the power stations is approximately $1.6 billion and Siemens’ share of the project investment will be $1 billion.

With a national growth rate of 9%, the central government planned new power stations in 2004 to meet predicted energy shortages. An increase in installed capacity to 38,000 megawatts is expected by 2015. Siemens will be looking for more opportunities in the Argentine power market.

The power plants will be built at Campana in Buenos Aires Province and in Timbues, near the city of Rosario in Santa Fe Province. Both projects will be constructed and operated by the Independent Power producers Termoelectrica Manuel Belgano (TMB) and Termoelectrica Jose de san Martin (TSM), whose main shareholders are Endesa (NYSE:ELE) (Madrid, Spain), Total (NYSE:TOT) (Paris, France), AES (NYSE:AES) (Arlington, Virginia), Petrobras (NYSE:PZE) (Buenos Aires), EDF (Paris, France) and Duke (NYSE:DUK) (Charlotte, North Carolina). SPG will deliver two high efficiency SGT5-400F gas turbines, one SST-5000 steam turbine and the company’s most advanced SPPA-T3000 instrumentation and control system to both projects.

The scope of the Siemens supply contract also covers the heat recovery steam generator (HRSG) and power electrics. The company will also handle maintenance for both power plants for a period of ten years. Two local consortium partners Duro Felguera and Electroingenieria (ESA) for TMB and Inelectra SACA and ESA for TSM will be responsible for the balance of plant materials and construction of the plants.

Primary fuel for the plants will be natural gas with liquid fuel as an alternative. Commercial operation is due to start in the first half of 2008 in open cycle mode and full operation in combined cycle mode is scheduled for early 2009.

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