Siemens to supply US$1bn components to Saudi plant

Siemens to supply US$1 billion in components to new Saudi power plant.

Just days after Siemens announced its plans to establish a manufacturing and service facility in Saudi Arabia, the company has revealed a US$1 billion order to supply components for a cycle power plant with a seawater desalination facility.

Siemens is to supply 12 gas turbines, ten heat-recovery steam generators, five steam turbines and the associated auxiliary and ancillary systems to the Ras Az Zawr power plant, planned for commercial operation in early 2014.

The purchaser is a consortium comprising Al Arrab Contracting Company, Saudi Arabia and the Chinese Sepcoll Electric Power Construction Consortium.

The 2,400MW plant is to be built approximately 75km north west of Jubail, supplying electricity to an aluminum smelting plant and around 225 million imperial gallons per day of drinking water to the five million residents of Riyadh.

Michael Suess, CEO of the fossil power generation division of Siemens Energy, said: “Ras Az Zawr is one of the most important megaprojects in Saudi Arabia. It is another great example of the outstanding strength in partnership between Siemens, ACC and Sepco. With this step Siemens establishes its dominant role in the world of advanced Gas Power plants, as well in Saudi Arabia.”

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An attractive power generation market, the next ten years is predicted to see Saudi Arabia’s population increase from 28 million to 40 million, requiring double the installed capacity for power generation.

Each year new plants with a combined capacity of at least 4,000MW will need to be built, and this latest step marks major investment in the kingdom’s capacities for power and drinking water supply.