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Top 10 Power Projects

Top 10 Power Projects

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ANALYSIS

Hassyan IWPP
Set to become one of the largest in the world when finished, the Hassyan power and desalination plant will produce 9,000 megawatts of power and deliver 720 million gallons of desalinated water per day to Dubai.

Dubai’s first venture into utilities sector public private partnerships, the Hassyan power plant is to be constructed in a series of six stages, with the first two phases initially tipped to come online next year.

However, a series of delays and setbacks has seen the project tendered on several occasions, most recently in March this year, with HE Saeed Al Tayer, CEO and managing director of the Dubai Electricity and Water Authority (DEWA) saying that the natural gas-fired plant would be ready for commissioning by 2014.

In June, top-level DEWA executives met with representatives from 18 potential developers for the pre-bid conference, with Al Tayer saying: “This IPP is an integral part of DEWA’s strategic direction moving forward.

We look forward to building a unique and strong relationship with the private sector, and adopting the best practices available internationally.” Firms from South East Asia, Japan, Korea, India, USA, Europe and the GCC have all expressed an interest in the project, planned for construction at a site near Abu Dhabi.

The initial phase of the Hassyan development will produce 1,500 megawatts of generating capacity, and was originally to be overseen by Mott Macdonald, who were selected by DEWA to engineer Phase 1’s station, seawater intake and outfall system.

With each phase costing between $2bn and $3bn, estimates for the plant’s total cost come in at up to $18bn. The facility’s primary fuel is to be natural gas with diesel oil as a secondary backup source, and the first phase will include a combined-cycle gas turbine system, built using four F-class gas turbines, four heat recovery steam generators and two back-pressure steam turbines.

The six desalination units onsite will be fed by a 4km canal that’s already under construction, capable of carrying 90,000 gallons of water per second.

GENERATION: 9,000MW
CoMMISSION DATE: 2014
COST: $18BN
COUNTRY: UNITED ARAB EMIRATES

Braka Nuclear Facility
Splashing out $20 billion on power generation technology large swathes of the world are turning away from may seem like a step backwards, but for the Middle East it could be the only viable answer to the continuing power struggle.

The UAE’s Braka plant has been in the pipeline for some time now, although hopes of commissioning the first unit by 2017 look increasingly less likely following the introduction of a year-long review into the project’s licence application.

A KEPCO-led consortium incorporating Hyundai Engineering and Construction, Doosan Heavy Industries and Construction and Westinghouse, scooped the deal to build and operate the plant following the announcement that Braka, 300km south of Abu Dhabi, would be the construction site.

The facility is a quad-reactor design, utilising APR1400 type units; evolutionary Generation III pressurised water reactors largely designed by KEPCO which, under the contract terms, is responsible for the engineering, procurement, construction, fuelling and operations and management support for the project.

The Emirates Nuclear Energy Corporation (ENEC) also recently announced that it has begun a nuclear fuel procurement competition for the supply of fuel for the four reactors.

The procurement process will provide ENEC with a set of contracts that provides long-term security of supply, favourable pricing and commercial terms, and high-quality fuel. ENEC has said it expects to begin commercial negotiations later this year on proposals submitted by the leading companies in the international nuclear fuel cycle market, and final contracts are expected to be signed in the first quarter of 2012.

GENERATION: 5,600MW
COMMISSION DATE: 2017
COST: $20bn
COUNTRY: United Arab Emirates

Shuaiba 3 Expansion
In June this year, the Saudi Electricity Company signed a 12-year loan for just over $989m with a group of international banks to finance the expansion of the Shuaiba 3 project on the Red Sea coast.

All in the project to expand the generation capacity of the Saudi-based IPP is worth in the region of $3bn, and French power engineering firm Alstom won the main construction contract in 2008.

Having also been responsible for the plant’s previous expansion projects, this latest round of upgrades will see Alstom adding 1,200 megawatts of power to the facility’s output, taking total generation to 5,600 megawatts.

The Saudi Electric Company plans to add more than 1,800 megawatts of national generating capacity this year, and almost 13,000 megawatts between 2012 and 2016, in an attempt to bridge the chasm between generation and increasing demand.

Located 100km south of Jeddah, the plant’s extension project is due for completion in 2013, and is constructed of 14, 1,400 megawatt generating units. As the construction consortium leader, Alstom’s remit includes the design, supply, installation and commissioning of the whole plant.

GENERATION: 5,600MW
COMMISSION DATE: 2013
COST: $3bn
COUNTRY: Saudi Arabia

Rabigh Plant Extension
The oft-delayed Rabigh power plant near Jeddah in Saudi Arabia will eventually add 2,800 megawatts to the Kingdom’s national grid, as part of an attempt to increase the country’s generating capacity by 20,000 megawatts by 2018.

South Korea’s Doosan Heavy Industries and Construction scooped the project deal in September 2010, after it sliced more than $555m off its proposal for the plant, undercutting competition from Hyundai and Alstom, who also revised their bids. All of the bids came in at less than the Saudi Electric Company’s initial $4bn estimate, with the winning bid at $3.39bn.

Over a 50-month period Doosan is to produce, install and test equipment and facilities at the plant, which is also to include systems for the removal of nitrogen oxide, carbon gases and carbon ashes in a bid to boost its environmentally friendly credentials.

Rabigh is the first in a planned programme of three projects in which the private sector it involved on a build-own-operation basis and, using natural gas and crude as a feedstock, the plant is engineered to run four 700 megawatt units and is due for completion in summer 2014. It was financed through a SAR15bn ($4BN) soft loan from the government to the SEC, as part of a SAR205bn ($55bn) investment into the Kingdom’s power sector to 2018.

GENERATION: 2,800MW
COMMISSION DATE: 2015
COST: $3.39bn
COUNTRY: Saudi Arabia

Ras Al Zour
Last year, contracts worth more than $4bn were signed by Saudi Arabia’s Saline Water Conversion Company (SWCC) for a power plant that would also feature the world’s largest desalination facility.

The 2,800 megawatt plant, originally planned for development by a private-sector consortium led by Sumitomo Corporation, was re-tendered in late 2010 and the construction of the desalination facility was handed to South Korea’s Doosan Heavy Industries and Construction Co, and the power plant to China’s Sepco III Electric Power Construction Corporation and Al Arrab Contracting Company. The power plant section of the facility alone represented a $2.4bn contract.

In February this year, Siemens Energy received a contract worth more than $1bn to supply the components for the plant’s combined-cycle internals; one of the firm’s largest contract wins in the Middle East.

The contract was for the supply of 12 gas turbines, 10 heat recovery steam generators, five steam turbines and associated ancillary systems for the plant, which is tipped for completion in early 2014.

At the time, Michael Suess, CEO of the fossil power generation division of Siemens Energy, said: “Ras Al Zour is one of the most important mega projects in Saudi Arabia,” also adding that it was the fifth largest plant the company has been involved with in the region.

The plant’s desalination facility is designed to output one million cubic metres of desalinated seawater per day making it the world’s largest, supplying nearby Riyadh, Hafr Al-Batin and the Saudi Arabian Mining Company with water. The Ras Al Zour facility is part of a government-led $400bn fiscal stimulus package that aims to reduce Saudi Arabia’s reliance on oil exports.

GENERATION: 2,800MW
COMMISSION DATE: 2014
COST: $4bn
COUNTRY: Saudi Arabia

Yanbu I and II
Although 12km apart and technically two separate plants, we’ve included these projects together as they are both being constructed by the same contractor, and will provide power to the same area.

South Korean firm Hanwha Engineering and Construction Corporation was awarded the $1.05bn contract to build Qatar’s Yanbu I power and water project back in 2009. The company’s success was partly put down to its ability to deal with unfavourable factors such as short timelines and constricted building areas.

Awarded by Marafiq, the utility company for Jubail and Yanbu, the initial contract was for the construction of two steam turbine generator plants, each producing 500 megawatts. Still tipped for completion next year, the project will push the plant’s total generating capacity to 1,500 megawatts, and is currently 60 per cent complete.

A second contract, for the construction of the Yanbu II power plant, was awarded to Hanwha in April this year. Worth $1.05bn, the order is for the three steam turbine generators, each with a generating capacity of 230MW, 890 tonnes of boiler (heavy oil-fired type) and desalination plant on an EPC, turnkey basis.

Power specialists ABB have also recently been awarded a $17m contract from Hanwha for the extension of Yanbu’s existing substation, enabling the integration of additional power capacity to the plant.

Under the terms of the contract, the firm will design, supply, install and commission the extension of the existing 380/115 kilovolt substation, including high-voltage gas-insulated switchgear, a range of circuit breakers and the control, protection and telecommunication equipment.

GENERATION: 2,500MW
COMMISSION DATE: 2012
COST: $4bn
COUNTRY: Saudi Arabia

Jizan Economic City Power Plant
Due for completion next year, the $2.5 billion project to construct a 2,400 megawatt power plant in Jizan Economic City was awarded to China’s CPI power back in 2008. Construction started in 2009, and completion is tipped for 2013.

The contract for construction of the plant, which is an essential component part of the city’s infrastructure, includes a main power unit, a desalination plant, associated balance-of-plant, electrical substation and fuel oil storage facilities.

Located on the city’s southern coastline, around 725km south of Jeddah, the plant is intended to satiate the Economic City’s demands, and it’s hoped that there will be power left over to sell on to the country’s national grid, using steam-cycle technology firing on Arabian crude oil. When finished, the desalination plant is expected to produce up to 500,000 cubic metres of potable water per day.

GENERATION: 2,400MW
CoMMISSION DATE: 2013
COST: $2.5bn
COUNTRY: Saudi Arabia

Sur IPP
In July this year, a consortium led by Marubeni Corporation, and comprising Chubi Electric Power Companies, Qatar Electricity and Water Company and Multitech LLC signed a build, own and operate agreement with OPWP for Oman’s Sur Independent Power Project.

The consortium beat four other contenders – Siemens LLC, Sembcorp Utilities, Enka and Mitsui & Co to secure a licence to build the country’s largest greenfield power project.

The announcement ended months of speculation into the likely candidates for the project, and the initial $1.5bn investment marks the largest IPP ever undertaken in the Sultanate. It’s also the first major investment by a Japanese-based power company in Oman.

The plant is planned for construction on the existing Sur Industrial Estate, and is to run on natural gas provided by the Sultanate’s ministry. Split into two phases, the inaugural phase is planned to come on stream with 433 megawatts of generating capacity ahead of peak summer demand in April 2013, and the fully commissioned 1,567 will follow a year later.

As the plant’s offtaker, the state-owned Oman Power and Water Procurement Company has committed to the purchase of the plant’s full capacity for 15 years after the inauguration date.

Having already seen 500,000 shares listed on the Muscat Securities Market, at a total value of $1.3mn, an IPO for the project is expected to be launched by Phoenix Power – the company set up as a special purpose vehicle for the plant’s construction – in two years’ time.

GENERATION: 2,000MW
COMMISSION DATE: 2014
COST: $2bn
COUNTRY: Oman

Riyadh P11
Late last year, GE signed agreements worth around $700m to supply power generation equipment and long-term services for a new, gas-fired independent power plant in Saudi Arabia.

Located at Dhuruma, 80km west of Saudi capital Riyadh, the project will add almost 1,730 megawatts of power generation to the Kingdom’s SEC-run grid, constituting 15 per cent of the power generation in the country’s central region.

Owned and operated by Dhuruma Electricity Company – formed by SEC and a consortium comprising GDF Suez, Alijomaih Group and Sojitz – the plant will be designed and constructed by Hyundai Heavy Industries of South Korea, and the projects inaugural phase, at 788 megawatts, is scheduled to enter commercial operation in mid 2012.

The remaining generation will be added in a second phase of 941 megawatts, in mid 2013. The plant is something of a landmark for Saudi Arabia; it’s the first gas turbine combined-cycle independent power plant for the Saudi Electric Company, and it’s been designed with the environment very much in mind.

Under the terms of the contract, GE is to supply seven Frame 7FA gas turbines and two D11 steam turbines to the project, which are highly efficient, use clean-burning natural gas and feature advanced emission control with dry low-nitrogen dioxide technology.

GE has also signed a contractual services agreement and will supply parts and aintenance services to the plant for 20 years after inauguration.

GENERATION: 1,730MW
COMMISSION DATE: 2013
COST: $2.1bn
COUNTRY: Saudi Arabia

Shuweihat 3
The contract for this 1,600 megawatt independent power project in Abu Dhabi was awarded to Siemens earlier this year, to be constructed with its partner, Korean firm Daewoo Engineering and Construction company. When the private sponsors of the project – Sumitomo and Kepco – brought the project to financial close in April this year, it was the first power-only project in the Emirate to do so, having secured $1.1bn in project finance debt and replacing a previous planned IWPP, which was cancelled in 2009.

Working together, Siemens will supply a turnkey, combined-cycle power plant, using four SGT5-4000F gas turbines, two SST5-4000 I-L steam turbines, six generators and an SPPA-T3000 electrical and an L&C system.

Daewoo Engineering is to be responsible for the plant’s auxiliary systems and civil works, and in an effort to fast-track the power project and to save investment costs, plans for a major desalination facility, originally to have been incorporated into the plant, have also been scrapped.

Constructed on a build, own operate basis, commercial operation is tipped to be some time in 2014.

GENERATION: 1,600MW
COMMISSION DATE: 2014
COST: 1.5bn
COUNTRY: UNITED ARAB EMIRATES

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