GE has hailed a $3 billion deal with the Iraqi government as a “significant milestone” in the country’s efforts to rapidly develop energy infrastructure and increase electricity production.
The US engineering company has reached an agreement with the Iraqi Ministry of Electricity to supply equipment that will add some 7000 MW to Iraq’s power grid. The deal follows a contract signed in May 2008 for eight GE gas turbines totalling 600 MW of capacity to meet short term power requirements in the country.
Under the latest agreement, GE Energy will provide 56 of its heavy-duty frame 9E multi-fuel gas turbines as well as other services. The equipment will be installed at key sites around the country to boost electricity production and underpin economic growth.
“We are honoured that the government of Iraq has chosen GE to support its efforts to expand the country’s energy infrastructure,” said John Krenicki, GE vice chairman and president and CEO of GE Energy. “Electricity is the backbone for quality of life and economic growth.”
Iraq’s daily power generation output currently averages less than 6000 MW, while demand is typically more than 10 000 MW. The addition of new turbines will help to improve power stability and address electricity shortages.
GE will provide technical advisory services, performance testing and spare parts to support the reliable operation of the turbines. It will also provide technical and management training to help Iraq strengthen its power sector workforce.
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