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KSA power projects show new emphasis on gas

by Florian Neuhof on Nov 11, 2010

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Saudi Arabia has boosted its gas supply to meet soaring demand for electricity.

This week’s tender and contract activity shows that Saudi Arabia is making use of increased gas production to meet rising demand for electricity, with power and water plants running on the feedstock.

On Wednesday, the contract for the delayed Ras al Zour power and water plant was finally signed, and the tender for a power and water project was launched. Both plants will be fired by gas.

The projects are made possible by Saudi Aramco’s effort to fast track the development of gas production at the Hasbah and Arabiyah offshore gas fields. The resultant increase in supply will be used to meet rising residential and industrial demand.

“This breathing space in domestic supply means that SEC and SWCC are trying to regain the momentum in developing enough power and water capacity for the kingdom's fast-growing demand, while also supporting some of the important industrialisation projects,” comments Sam Ciszuk, analyst at IHS Global Insight.

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