GE Bags $300 Million Turbine Contract as Egyptian Power Demand Grows 13%

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Egypt's Ministry of Electricity and Energy reports that the country experienced a 13% growth in electrical power demand from 2009 to 2010, and the rate of demand growth is expected to stay at about 11% over the next five years.

Dr. Hassan Yunnis, the power sector minister, said that Egypt was heralding a new era in growth, with a focus on the development of all economic sectors. "Driving this is the power industry, which is being upgraded and strengthened to meet the needs of the people and boost business efficiencies," he said. "The partnership with the major industrial energy companies will accelerate the development of the country's power sector and, in turn, the overall economy."

In this growth scenario, General Electric (NYSE:GE) (Fairfield , Connecticut) has signed a total of $300 million in contracts for the supply of six gas turbines and associated services to the Egyptian Electricity Holding Company for two new combined-cycle power plants to support domestic and business demand in the Cairo region. With its consortium partner Sepco III, GE will execute expansion projects on the Giza North and Banha power plants. The projects will add 2,250 megawatts (MW) to the national grid, which represents about 10% of current capacity.

GE will supply four Frame-9FA gas turbines for Giza North and two others for Banha, as well as installation and technical services. The turbines are equipped with GE's advanced dry low-NOx (DLN) combustion technology to support the need to lower emissions at both power plants. The advanced DLN combustion technology is designed to assist gas turbine operators to meet lower emission requirements without the injection of diluents. Nearly 800 GE units worldwide have compiled more than 23 million hours of operation with 700 DLN combustors.

Sepco III will fulfill the engineering, procurement and construction contract side for both power plants. Sepco is a wholly owned subsidiary of China's Shandong Electric Power Construction (Shandong), which claims to be the largest group in the construction of fossil fuel power projects in China. GE has worked on projects before in the Middle East, but this is the first time the companies have formed a consortium for an Egyptian project.

The four Giza North turbines will have total capacity of 1,000 MW, and the plant will generate 1,500 MW in combined-cycle operation. The two turbines at Banha have a total capacity of 500 MW, and the combined-cycle output will be 750 MW. The turbines will be shipped in the second quarter of 2012. The two new plants will operate at 56% combined-cycle efficiency and meet emissions standards of 25 parts-per-million NOx. Both plants will use natural gas as a primary feed.

Since 1972, GE has installed 70 gas turbines in Egypt, which generate more than 7,000 MW, or 25% of the country's total capacity.

View Project Report - 300015407 300016917

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.