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Kuwait's gas-fired power plant to be launched 2016

The plant, located at the Azzour region of Kuwait, is the first independently owned plant established under the country’s Public Private Partnerships (PPP) law of 2008

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Minister of State for Cabinet Affairs, Minister of Electricity and Water Sheikh Mohammad Al-Sabah and other senior government officials during a tour of the facility
Minister of State for Cabinet Affairs, Minister of Electricity and Water Sheikh Mohammad Al-Sabah and other senior government officials during a tour of the facility

The work at Azzour North One, the first gas-fired combined cycle power and water desalination plant in Kuwait, is progressing well and is due for completion by the fourth quarter of 2016, said its developer, Shamal Azzour Al Oula.

It is 40 per cent owned by a private consortium comprising Engie (formerly GDF Suez), Sumitomo Corporation, and AH Al Sagar & Brothers. The remaining 60 per cent stake at Shamal Azzour Al Oula is with the Government of Kuwait.

Once completed, the plant will boast a capacity of more than 1,500 megawatts (MW) of electricity and 107 million gallons of water per day (mgpd). This represents 10 per cent of Kuwait's power capacity and 20 per cent of its water capacity.

The plant, located at the Azzour region of Kuwait, is the first independently owned plant established under the country’s Public Private Partnerships (PPP) law of 2008, reported Trade Arabia.

The Kuwaiti government is mandated to sell 50 per cent of the total ownership through an initial public offering (IPO) to Kuwaiti citizens after construction is completed, while the government will its retain 10 per cent stake.

Shamal Azzour Al-Oula on Monday achieved a key production milestone with the on-schedule crossing of the 664.2 MW power mark, representing 40 per cent of the total power output at the plant.

The company's partners and primary contractors hosted a major ceremony to celebrate the production and construction milestone in the presence of Minister of State for Cabinet Affairs and Minister of Electricity and Water Sheikh Mohammad Al Sabah and President of Kuwait Authority for Partnership Projects Adel Al Roumi.

On the achievement, Shamal Azzour Al Oula chairman Yousef Al Hajri said: "We are very proud to announce the crossing of this major milestone today and we are on schedule to operate at 100 per cent capacity by the last quarter of next year. The ongoing achievements of the project is a testament to the success of the various government and private partnerships that this company was founded on."

The plant aims to meet Kuwait’s plan to significantly increase capacity over the coming years, in a larger effort to meet an anticipated peak demand of 25 gigawatts (GW) by 2025.

The treated water and the power produced from the plant will be entirely supplied to the country’s national power and water grid operated by the Kuwait Ministry of Electricity and Water under a 40-year long-term energy conversion and water purchase agreement.

As per the deal, Engie and Sumitomo will undertake the operation and maintenance of the plant on an equal share basis.

CEO Andrew Biffen said the milestone could be achieved because of the great work and co-operation of everyone working at Azzour North plant including the government and private shareholders, and its construction partners Hyundai Heavy Industries (HHI) and Societe Internationale De Dessalement (Sidem) Sidem.

"I would like to thank everyone who had a role in bringing us to cross the 50 per cent power production milestone on schedule and we look forward to announcing the 100 per cent power production milestone by this time next year," he added.

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