GE Energy wins $500 million Bahrain deal
Manama, June 11, 2009
GE Energy has signed contracts totaling more than $500 million to supply advanced power generation equipment and long-term services for the Al Dur Independent Water and Power Project, the largest power plant in Bahrain.
Developed to help meet Bahrain’s growing power and water requirements, the plant is located in the Al Dur area on the Kingdom’s southeastern coast. Bahrain’s Electricity and Water Authority is planning additional capacity expansions over the next 20 years to support the country’s reported power demand growth rate of 7-10 per cent a year.
“Al Dur is one of the most significant energy projects ever undertaken in Bahrain, and is needed to help meet the country’s increasing demand for electricity and water from urban and economic development to strong investment activities,” said Fahmi Bin Ali Al-Jowder, Minister of Works and Minister in charge of the Electricity and Water Authority.
“It is critical for us to have access to proven technology and world-class services that are customised for our specific needs. We are confident that, with its global technology capabilities and strong local presence, GE will support us in meeting the need for responsible, efficient energy for the people of Bahrain,” he said.
When completed, the plant is expected to provide 1,250 MW of power, which would account for 30 per cent of the kingdom’s existing electricity grid output, as well as 48 million imperial gallons of desalinated water per day.
GE Energy is supplying two steam turbines and four heavy-duty Frame 9FA gas turbines, which are equipped with GE advanced emission control technologies. GE has also signed a 20-year contractual service agreement (CSA) contract for the project, which will support the long-term operability and performance of the turbines.
“As the first installation of our F-class gas turbines in the Kingdom of Bahrain, the Al Dur project demonstrates our commitment to deliver advanced technology solutions and services to support the Kingdom’s growing power and water needs, which are critical to providing its citizens with a high quality of life,” said Joseph Anis, GE Energy’s region executive for the Middle East.
“The project is an example of the growing trend toward the integration of water and power production at a single site, especially in the Middle East where population and industrial growth rates exceed many other regions of the world,” Anis added.
The Al Dur project further expands the presence of GE’s F-class gas turbine technology for projects in the Middle East. GE’s advanced gas turbines have accumulated more than 28 million hours of commercial service worldwide since their introduction in 1987, and are among the most efficient gas turbines available for combined-cycle operation. They have set global industry standards for reliability, efficiency and operational flexibility and are fuel flexible with advanced DLN 2.6+ combustion systems that limit nitrous oxide (NOx) emissions. Natural gas will be used as the primary fuel for the units at Al Dur, with distillate as a backup.
Under the terms of the CSA, GE Energy will supply parts, repairs and provide field services for planned and unplanned maintenance for the gas turbine-generators and accessory equipment. Designed to increase the reliability of the power plant equipment, the CSA also guarantees the availability of power, which is especially critical during the summer months.
GE’s long-term service agreements are structured to provide customers with predictable maintenance costs while ensuring a steady revenue flow from power plant operations. To date, GE has long-term service agreements including CSAs in place at more than 600 sites worldwide, said the statement.
GE Energy is a regional leader in power generation, with more than 1,000 turbines installed throughout the Middle East providing more than 70 gigawatts. GE Energy has announced more than $8