(EnergyAsia, August 19 2013, Monday) — Germany's Siemens said it has secured a large order of components for the construction of a 4,000MW gas-fired combined-cycle power plant in Saudi Arabia.
State energy firm Saudi Aramco placed the US$966.8 million order for the plant which is expected to start up in 2016 to power up the industrial city including a 400,000 b/d refinery in the south-western city of Jazan. Comprising five units, the Jazan power plant will be fuelled with gasified refinery residues that will help preserve the country's energy resources.
The plant's first two units will start up in the spring of 2016, with the rest to follow in the second half of 2017.
Siemens said it will supply 10 gas turbines, including six to be manufactured in Saudi Arabia, that are designed to use synthesis gas (syngas) and diesel fuel for what will be one of the world's largest power plants.
The German firm, which said the SGT6-5000F gas turbine model has a successful track record of more than nine million operating hours, will also supply five steam turbines, 15 generators and 10 heat recovery steam generators.
"This is not only the largest order to date for Siemens from Saudi Aramco, but also a significant milestone in our successful cooperation with the biggest oil company in the world, and is proof of the success of our regionalization strategy," said Michael Suess, CEO of Siemens' Energy Sector and member of the Siemens AG managing board.
Nabil Aldabal, managing director of Aramco Overseas Company, a Saudi Aramco subsidiary, said:
"This new highly efficient combined cycle power plant is an important part of our major project in the new economic zone in Jazan, and for this we must have efficient and reliable technology. We are looking forward to working with Siemens on this strategic project."
Saudi Arabia, with its large oil and natural gas reserves, is the largest economy in the Gulf region with significant potential to grow demand for efficient fossil power generation. For the rest of the decade, the kingdom's power demand is projected to increase by six percent per year while its population is expected to increase from about 28 million to 34 million in 2020. The government is planning to increase the kingdom's installed power generation capacity from 67 gigawatts in 2012 to 140 gigawatts in 2020.
Siemens said it is investing in this growth market by constructing a facility in Dammam city to manufacture and service gas turbines and related equipment.
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