Siemens Bags Power and Water Contract in Saudi $11 Billion Raz as Zawr Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--Siemens AG (NYSE:SI) (Munich, Germany) is consolidating its position as a major player in Saudi Arabia's power and technology sectors. Last week, it was announced that the company had established a manufacturing and service center, which is to be followed by a $1 billion-plus contract for the supply of components and equipment for a combined-cycle power plant at Ras Az Zawr, with an associated desalination facility.

The consortium awarding the contract is made up of Al-Arrab Contracting Company and the Saudi Arabian and Chinese Sepco 111 Electric Power Construction Company.

The $11 billion Raz Az Zawr facility is 90 kilometers north of Jubail on the Arabian Gulf, and is close to the country's oil and gas production in Eastern Province and the world's largest oil export port at Ras Tanura. This gives the new complex the advantage of an extensive network of supply pipelines and storage facilities for feedstock and product.

Siemens will supply 12 SGt6-5000F gas turbines, 10 heat-recovery steam generators, five SST6-4000 steam turbines, 17 SGen6-1000A generators and associated auxiliary and ancillary systems, and SPPA-T3000 instrumentation and controls for the 2,400-MW power plant. Power will supply an aluminum smelter and a desalination plant to produce 225 million imperial gallons of water per day, which in turn will supply the Saudi capital Riyadh, which has a population of 5 million. The water capacity is equivalent to about 1 billion liters or 200 liters per inhabitant of the city.

This is one of the largest orders won by Siemens in the Middle East and will be the fifth-largest capacity power plant built by Siemens in Saudi Arabia following the Shuaibah IWPP, Jeddah 111, Ghazian and Al Khobar projects. Siemens is also supplying four gas turbines for the Hail Extension 11 and Al Qurayat Extension 11 projects.

Bechtel (San Francisco, California) is supplying engineering, procurement and construction services for the aluminum smelter project at Raz Az Zawr. The $4 billion smelter has two Pechiney AP technology potlines and will produce 740,000 tons of aluminum per year. The majority of the aluminum will be exported, but 225,000 tons will feed the adjacent rolling mill. The smelter will include a carbon plant for anode production, ingot cast house, material handling and support facilities. The aluminum complex will use 1,350 MW of electricity and 25,000 cubic meters of water per day. The earliest production is scheduled for 2013.

Fluor Corporation (NYSE:FLR) (Irving, Texas) will supply program management consultancy services for the aluminum complex and, in a 50:50 joint venture with Australia's Worley Parsons, will provide engineering, procurement, construction and management (EPCM) services for the bauxite mine and alumina refinery, as well as stand-alone EPCM services for the rolling mill and the site's integrated infrastructure. Fluor's contract work is worth about $3 billion.

For more information, see February 17, 2011, article - Siemens Plans for Strong Job Training at Saudi Manufacturing and Service Center.

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