Kuwait Seeks to Double Power Generation Capacity by 2017 to Address Summer Outages

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The Kuwaiti government plans to double the country's power generation capacity by 2017, with an additional 3,000 megawatts (MW) by the end of 2012. Kuwait has an installed capacity of 11,000 MW. Natural gas and oil fuel 28% and 72% of the capacity, respectively. Kuwait has a shortfall in power generation that creates power outages in summer months, as temperatures increase to 50 degrees Celsius and most of the population relies on high power consumption air conditioning to escape the brutal heat.

The Subiya power station will be on line within the next two years. The project will consist of two phases, with the first adding 1,300 MW to the electricity grid in 2011. The Subiya power plant will be ready to generate power at a capacity of 1,320 MW next summer, according to statements made by Badr al Shuraian, the Kuwaiti minister of electricity and water, to parliament. Kuwait awarded a $2.65 billion construction contract for the plant to General Electric (NYSE:GE) (Fairfield, Connecticut) and Hyundai Heavy Industries Company Limited (KRX:009540) (Ulsan, South Korea) last September.

Kuwait burns 300,000 barrels a day of oil products, or 12% of its daily oil production, in thermal power plants to meet demand, said Ahmad Bishara, the secretary general of Kuwait's National Nuclear Energy Committee. Therefore, Kuwait is looking for alternatives to cover power deficits in the country and to retain their oil and gas for exporting, as long as prices are more than $50.

Bishara said that Kuwait is planning to build four 1,000-MW reactors by 2022. Speaking to press in Tokyo, he added construction will begin as early as January.

View Project Report - 94100027

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.