Doosan Heavy Secures Equipment Supply Contract for Egypt's Ain Sokhna Supercritical Power Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Doosan Heavy Industries and Construction Company Limited (SEO:034020) (Chahngwon, South Korea) won a $350 million international bid from Egypt for the supply of power equipment to the Ain Sokhna power plant, which is promoted by East Delta Electricity Production Company (El Dakahleya, Egypt).

Under the deal, Doosan will design, manufacture and install two boiler units for the 1,300-megawatt (MW) supercritical power plant, which are set for the port city of Ain Sokhna, in the vicinity of Cairo. The facility will comprise two units of 650 MW each. Installation is to be completed by February 2014.

Power generated from the facility will be linked to the National Unified Power System through a 500/220-kilovolt GIS Switchyard. The Ain Sokhna power plant has been envisaged to run on a fuel mix of natural gas and residual oil.

The project is being funded by the Arab Fund for Economic and Social Development (Safat, Kuwait), as well as the African Development Bank (Tunis-Belvedere, Tunisia).

Steam turbine generators for the first supercritical power plant in Egypt will come from Sumitomo Corporation (TYO:8053) (Tokyo, Japan) and Hitachi Limited (NYSE:HIT) (Tokyo). A contract worth $330 million has been awarded to these companies to manufacture, install and test the two natural gas-based steam turbine generators. Construction and handover operations at the facility are expected to be completed by 2013. Based on supercritical technology, the generators will be driven by steam under high operating temperatures and pressures, controlling carbon dioxide emissions from the process.

This being Doosan's maiden venture in Egypt, the company is planning to tap into the Egyptian power market, which is forecast to grow at an annual rate of 5%. According to Doosan, future orders for oil boilers from Egypt are likely to amount to 2,000 MW per year, mainly comprising 650-MW class boilers. With this order, Doosan is consolidating its position as a supplier of oil boilers in the Middle East and North African region.

In January this year, Doosan won a $1.1 billion deal to build a coal-fired power plant at Raipur in Chhattisgarh, India. Doosan will undertake engineering, procurement and construction activities for the 1,370-MW power plant due to be operational by the latter half of 2013. The facility will comprise two units of 685 MW each.

Apart from having secured a few orders from India earlier, Doosan is also involved in the nuclear power plant construction venture in the UAE. The company is also looking to secure more orders in India and the Middle East.

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