Kurdistan signs new power agreements
POSCO and Korea National Oil to construct new facilities for $700m
The Kurdistan Regional Government (KRG) has reportedly agreed contracts with South Korea’s POSCO Engineering & Construction Co. and Korea National Oil Corp. (KNOC) for the construction of power equipment valued at US $700 million, according to Bloomberg.
The deals will see the construction of a 300 MW steam power-generation plant near Erbil – scheduled to be built within three years – and a 400 kV transformer in Sulaimaniya province. POSCO will be responsible for building the plants, whilst KNOC is set to finance the deal in line with its oil exploration deal in the Kurdistan region.
This year has seen a flurry of activity in Kurdistan’s power sector, following last month’s announcement of a contract award for ABB to build a new 640 MW power plant by the end of 2013. This news was closely followed by another report that GE had agreed a deal with Mass Global to provide two GE C-7 steam turbines for a plant in Erbil. The country has, in addition, also recently undertaken grid upgrade contracts with Alstom Grid to engineer and supply air-insulated switchgear substations to boost the reliability of the Kurdish network.