Hyundai, Mitsubishi win Jeddah power plant deals
Riyadh, October 8, 2012
Saudi Electricity Company has awarded contracts for South Korea's Hyundai and Japan's Mitsubishi to build and supply equipment for a large power plant in Jeddah, SEC said on Monday.
Hyundai Heavy Industries (HHI) will build the 2,650-megawatt power plant known as Jeddah South, while Mitsubishi Heavy Industries (MHI) will supply equipment for the oil-fired plant.
The construction of the plant means Saudi Arabia, the world's largest crude exporter, will continue to burn millions of barrels a week of oil for power generation for years to come.
But SEC expects the more efficient plant, to burn much less fuel oil per unit of electricity produced.
"We are using for the first time in the kingdom super critical boilers which have a higher efficiency, reaching up to 40 percent efficiency in fuel consumption," SEC's chief executive Ali bin Saleh al-Barrak told Reuters in an interview.
SEC said in a bourse statement earlier on Monday that it had approved the award of an 11.96 billion-riyal ($3.12 billion) contract to build the plant but did not identify the winner.
The contracts for Jeddah are expected to be signed in the next few weeks, with contracts to build a similar-sized oil fired power plant at Shuqaiq awarded in late 2013, Barrak said.
Technical bids for the 2,600 MW Shuqaiq, a super critical fuel oil plant fitted with sulphur removing technology, are due in the first quarter of next year, Barrak said.
The state-run company also plans to spend around $35 billion on high voltage power lines, with another $25 billion spent on distribution networks over the next 10 years.
SEC has an installed capacity of 54,000 MW and will add around 4,000 MW over the next 12 months to help meet rising demand, with another 8,000 MW of capacity to be added in 2014. - Reuters
More Energy, Oil & Gas Stories
- Egypt will get oil aid from Arab states
- New technology for Bahrain's gas industry to save $300m
- Innovations key focus at Geoscience expo
- Iran seals gas export deal with Oman
- Total unit inks Elf Lubricants agreement
- Opec raises forecast for 2014 global oil demand
- Mitsui joins DME as trading member
- GE Power Conversion wins major SEC order
- Basra Light crude exports to rebound in April
- Aramco to produce unconventional gas for projects
- Alstom opens smart grid centre in Dubai
- Experts discuss key geosciences issues
- Egypt to permit factories to use coal for energy
- ME oil, gas transaction value up 15pc
- Victrex to showcase new product in Paris
- Aramco JV puts off giant refinery overhaul to 2015
- Libya threatens to bomb N Korean tanker
- Bahrain 'producing 850MW of surplus power'
- 2,000 experts for Bahrain geosciences summit
- Libyan rebels start oil exports, bypassing govt
- Dubai drilling company set for London IPO
- Opec output soars on higher Iraq exports
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies
- GlassPoint appoints new Oman director