Siemens to Equip 2400-Megawatts Gas-based Power Plants in Algeria

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Researched by Industrial Info Resources India (Delhi, India)--Leading Gas Turbine manufacturer, Siemens AG (NYSE:SI) (Munich) has bagged contracts for supplying main plant equipments to two upcoming combined cycle power plants, aggregating to 2,400 megawatts (MW) in northern Algeria.

Siemens has acquired the equipment contract, along with the supply of spare parts from Daewoo Engineering & Construction (047040 KS) (Seoul), turnkey contractor for 1,200-MW Cap Djinet power plant and from Hyundai Engineering (000720: Korea SE) (Seoul), which is also executing another gas-based power plant of same capacity at Ain Arnat in the Boumerdes province, 65 kilometers east of Algerian capital-Algiers. Both these power plants are being developed by Society for Electricity Production (SPE) (Alger), an affiliate of the state-owned electricity utility Sonelgaz SPA (Alger, Algeria).

As per the terms of the contracts, Siemens will provide key machineries, including six SGT5-4000F gas turbines and SST5-3000 steam turbines with six SGen5-2000H-type generators, along with the related engineering services. The development of these new projects is part of Algeria's plans to double its power generation capacity from the current 11 gigawatts (GW) by 2022.

Daewoo Group has won the €753 million contract for Cap Djinet project in August 2012 with a completion target of 40 months, while the Hyundai Engineering-lead consortium bagged the contract in October 2012 to build the 1,200-MW Ain Arnat plant, valuated at €700 million. It is due to be completed within 39 months from the award of contract.

With these new contracts in house, Siemens seeks to play a major role in the industrialization of Algeria, which is the tenth-largest country in the world, and the largest in Africa and the Mediterranean. According to the 2012 Statistical Energy Survey, Algeria had electricity production of around 50 terawatt-hours, a change of 7.9% from 2010 and equivalent to 0.25% of the world total. To meet the power requirement for the upcoming industries in the country and to ensure their seamless growth, Algeria has planned for additional power generation by 2015.

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