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Top 10 power and water projects in the GCC

The ten most valuable power and water projects in the GCC

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GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS
GCC, IWPP, Power, Tender, Top, Water, ANALYSIS

The Middle East’s energy sector is witnessing a surge in its water and power investment with nearly 100 projects, worth over US$40bn, initiated this year. Here, we take a look at the ten most valuable projects underway...

1. Barakh Nuclear Plant

Country – UAE
Cost – US$20bn
Client - Emirates Nuclear Energy Corporation (ENEC)
Contractors - Hyundai Engineering & Construction Company, Samsung C&T Corporation, Doosan Heavy Industries

The UAE’s first nuclear-power plant is scheduled to open in Barakah, in the western region of Abu Dhabi, in 2017. In 2009, the UAE accepted a US$20bn bid from South Korea’s KEPCO-led consortium to build four commercial nuclear power reactors, total 5.6GW. Construction of the first unit started in July 2012, and the second in May 2013.

The plants will largely be financed by the state, without the need for loans, but with some Korean equity partners. By 2020, the UAE hopes to have four of the 1.4GW nuclear plants running and producing electricity at a quarter the cost of that from gas. It plans to export electricity to Gulf neighbours via the regional power grid.

Nuclear energy will save the UAE up to 12mn tonnes of carbon dioxide emissions each year. Companies in the UAE have secured more than US$1bn in contracts for products and services to support the construction at Barakah.

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Al Zour North IWPP

Country – Kuwait
Cost – US$7.7bn
Client - Ministry of Electricity & Water
Contractors - GDF Suez, Sumitomo Corporation

Kuwait’s Al Zour project covers four power and water desalination plants and is scheduled to be ready in 2015. The first two plants will have a production capacity of 1.5GW of power and 102MIGD of desalinated water.

The third will produce up to 800MW of power and 51MIGD of water, while a fourth plant will produce 1GW of power and 25MIGD of desalinated water.

The first plant will be an independent water and power project, while the second will be an engineering, procurement and construction project. A group led by Paris-based GDF Suez won the work in 2012 for phase one of the Al Zour North plants, which will cost as much as US$3bn. The project is part of the country’s US$111bn development plan to modernise and restructure Kuwait’s oil-based economy.

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3. Ras Laffan C

Country - Qatar
Cost – US$3.7bn
Client - Qatar General Electricity & Water Corporation
Contractors – Mitsui & Company

Ras Laffan C is an independently owned power and water plant with a combined cycle capacity of 2,730 MW of electricity and 63 MIGD of desalinated water. The project can supply approximately 30 per cent of Qatar’s electricity and 20 per cent of its potable water demands per day.

Construction commenced in May 2008 and facility acceptance took place within three years, at the end of March 2011. The first power milestone of 1,833 MW was reached in July 2010, just over two years from the start of construction, and the commissioning of the 63 MIGD water plant took place within two months from first steam admission.

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4. Jeddah South Power Plant

Country – Saudi Arabia
Cost – US$3.1bn
Client - Saudi Electricity Company

Contractors - Hyundai Heavy Industries (HHI)/ Mitsubishi Heavy Industries (MHI)

Hyundai Heavy Industries (HHI) is building this 2,650MW power plant, while Mitsubishi Heavy Industries (MHI) will supply equipment for the oil-fired plant. A scheduled five-phase expansion of the plant will add 4.4 GW of power generating capacity. The first three phases involve the installation of 630 MW each, at a cost of US $650 million a time.

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.

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5. Riyadh PP10

Country – Saudi Arabia
Cost – US$3.1bn
Client – Saudi Electricity Company
Contractors - Arabian Bemco

This 2,000MW power plant, located 100km southeast of Riyadh, consists of 30 gas turbine generating units. The PP10 project has increased the power capacity in Saudi Electricity Company’s (SEC) Central Operating Area by 20 per cent, helping to improve the reliability and delivery of power to SEC's customers.

In 2012, GE received a contract for nearly US $200 million to supply steam turbine technology, power generation services and distributed control systems for the conversion of SEC’s PP10 power plant from simple to combined-cycle operation. The project will add 1,300 MW to the plant’s capacity to support the growing power requirements of Saudi Arabia’s central region and help the Kingdom meet summer peak demands.

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6. Jazan Economic City Power Plant

Country – Saudi Arabia
Cost – US$3bn
Client – MMC Corporation Berhad / Saudi Binladin Group

The power and desalination plant at the Jazan Economic City are planned to be next to the coastline on the south side, consisting of the main power plant with the capacity of 1800 MW, desalination plant, associated balance-of-plant, electrical substation and fuel oil storage facilities.

Using a steam cycle technology firing on Arabian crude oil, the power plant will be built with sufficient capacity to provide for the power needs of the Economic City with excess capacity to be sold to the grid.

The desalination plant will be able to provide about 500,000 cubic meters per day of potable water to cater to the internal requirements of the Economic City as well as to supply to the distribution network.

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7. Yanbu Phase 3

Country – Saudi Arabia
Cost – US$3bn
Client - The Power & Water Utilities Company for Jubail & Yanbu (Marafiq) / Saline Water Conversion Corporation (SWCC
Contractors - Al Jaber Engineering / Samsung Engineering

The Yanbu Phase 3 scheme, planned to be built in Al-Madinah Province in the southern part of Yanbu, is set to comprise a 3,100 MW power plant, together with a US$1bn desalination plant with a reported 121 MIGD capacity output. In December last year, Samsung Engineering received a letter of award from Saudi Arabia’s Saline Water Conversion Corporation (SWCC) for the project.

Under the contract, a consortium comprising Samsung Engineering, China’s Shanghai Electric and Saudi Arabia’s Al Toukhi will work on the scheme. Samsung will execute the engineering, procurement and construction of the power plant on a lump-sum turnkey basis in a deal worth US $1.5bn.

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8. Shuaiba Phase 3

Country – Saudi Arabia
Cost – US$3bn
Client – Saudi Electricity Company
Contractors – Alstom Power

Located on the Red Sea coast 100 km south of Jeddah, Shoaiba Phase 3 is part of the enormous Shoaiba facility, which now generates a total of 5,600 MW to the Saudi grid from its fourteen units. The 1.2 GW power will be instrumental in helping Saudi Arabia meet the rising demands for electricity across the Kingdom.

Comprising three individual 400 MW blocks, the Shoaiba Phase 3 plant began in September 2008 and has been built around Alstom's steam turbines and turbogenerators. To meet stringent Saudi environmental regulations, it also utilises environmental control systems expertise.

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9. Qurayyah IPP

Country – Saudi Arabia
Cost – US$2.8bn
Client – Hajr Electricity Production Company
Contractors – Samsung

The Qurayyah power project, located at on the eastern coast of Saudi Arabia, will substantially increase power supplies to the Saudi power grid. The project has a net generation capacity of 3927 MW. The design production capacity will make it the largest IPP combine cycle gas-fired power plant in the world once completed.

Qurayyah IPP comprises 6 identical groups of equipment, each delivering net output of 654.5 MW. Each group comprises 2 Gas Turbines (GTs), 2 Heat Recovery Steam Generators (HRSG) and 1 steam turbine.

The project will deliver 3927 MW of electricity to SEC under a 20 year Power Purchase Agreement (PPA) commencing on 30 June 2014. Siemens will provide all major equipment and electrical systems and Samsung C&T will engineer, procure and construct the project as the EPC contractor to deliver the project.

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10. Shuweihat 3 (IPP)

Country – UAE
Cost – US$2bn
Client - Shuweihat Asia Power Company (Sapco)
Contractors – Siemens / Daewoo Engineering & Construction Ltd

This 1.6 GW power plant is being built 250km to the southwest of the city of Abu Dhabi. Both the Shuweihat 1 and 2 were IWPPs, whereas the third project is a gas-fired power plant and is expected to be ¬operational by spring 2014.

The Abu Dhabi Water and Electricity Authority (ADWEA) awarded a contract to build and operate the Shuweihat 3 to a consortium of Korea Electric Power Corporation (KEPCO) and Sumitomo in February 2011 - ADWEA is also present in the consortium.

The deal is seen paving the path towards a financing of Abu Dhabi’s first nuclear plant by South Korean development bank KEXIM, which is set to be built by KEPCO. Moreover, it is a significant project in terms of getting KEPCO and KEXIM exposure to the Abu Dhabi power landscape for the first time.

 

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