Saudi Arabia's Shuaibah Independent Water and Power Plant Attains 100% Production

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The Shuaibah project, considered to be Saudi Arabia's first independent water and power plant (IWPP), has attained full-capacity production. The project is located 90 kilometers south of Jeddah. The IWPP will generate 900 megawatts (MW) of power and 880,000 cubic meters per day of desalinated water. The project will address the energy and water needs of Al-Baha, Jeddah, Makkah and Taif. The project is being developed by the Saudi Arabian government in association with a consortium of Saudi and Malaysian companies. The Saudi government holds a stake of 40% in this venture, while the consortium holds the remainder.

In 2005, a group of Malaysian and Saudi Arabian companies, including Tenaga Nasional Berhad (KUL:TENAGA) (Kuala Lumpur, Malaysia), Khazanah Nasional Berhad (Kuala Lumpur), ACWA Power International (Riyadh, Saudi Arabia), and Malakoff Berhad (Kuala Lumpur), was selected to construct the Shuaibah IWPP on a build-operate-own basis. The contract, which was awarded in January 2006, is estimated to cost $2.5 billion. Doosan Heavy Industries and Construction Company Limited (SEO:034020) (Seoul, South Korea) and Siemens Power Generation Incorporated (Wilmington, Delaware) secured the contract to construct the plant. Doosan supplied components for the desalination facility, while Siemens undertook delivery of three steam turbine generation units with a capacity of 400 MW each as well as other allied components. The plant has one of the most advanced flue-gas treatment systems in the world.

The Shuaibah IWPP is the first in a series of four IWPP projects planned by Saudi Arabia. The four facilities together will produce 4,500 MW of power and 2.2 million cubic meters per day of desalinated water. The full commissioning of the Shuaibah IWPP will provide a big boost to the country's privatization program. The initiative has identified many sectors, including railways, telecommunications, highways, power, government hotels, sports clubs, water desalination, municipal and health services. These sectors are likely to see big investments from public-private partnerships, which will improve services through the use of new technologies, innovation, and best industry practices.

Saudi Arabia is constructing many other IWPPs to meet the growing energy and water needs of the country. The $4 billion Yanbu IWPP, expected to be completed by 2013, is expected to produce 1,700 MW of power and 150,000 cubic meters per day of water. Also in the pipeline is the $3.4 billion Jubail IWPP, which when completed in 2010 will generate 2,745 MW of power. Recently, Saline Water Conversion Company (SWCC) (Riyadh) and Power and Water Utility Company for Jubail and Yanbu (Marafiq) (Jubail, Saudi Arabia), announced the plans to construct the Yanbu 3 IWPP. The project is expected to produce 550,000 cubic meters per day of desalinated water and 1,700 MW of power. About 400,000 cubic meters per day of the water from the facility will be allocated to meet the needs of the holy city of Medina.

SWCC is also developing the Ras-Al-Zor IWPP, which is expected to generate 850-1,300 MW of power and 831,600 cubic meters per day of water. The project is estimated to cost about $550 million. The engineering, procurement and construction contract is likely to be awarded in early 2010, with plans to complete construction by early 2013. The Shuqaiq IWPP, which is being constructed near the Shuqaiq I plant on a build-own-operate basis, is expected to produce 212,000 cubic meters per day of water and about 850 MW of power. The project is located on the Red Sea coast, 105 kilometers south of Abha.

Demand for power in Saudi Arabia, one of the fastest growing economies in the Middle East, is expected to reach 140,000 MW by 2030. Experts indicate that commercial and industrial demand and related real estate development will spur the increase in demand 7% annually. By 2012, the Saudi government will have spent an estimated $28 billion to develop new power generating capacity and strengthen the country's power distribution and transmission network. By 2018, Saudi Arabia is expected to have invested $70 billion, which will add around 25,000 MW of new electricity generating capacity.

View Project File - 097000202 097000243 097000247 097000309 097000341 097000346

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.