The Kuwait Ministry of Electricity and Water has signed a turnkey contract with GE Energy and Hyundai Heavy Industries totaling $2.65 billion for a new 2000 MW combined cycle power plant in Sabiya.
The Government of Kuwait-owned plant will add much needed power to the grid, allowing Kuwait to boost electricity production to help meet growing demand. When completed, the plant will raise Kuwait’s power capacity from current levels of around 11GW. Kuwait’s robust business and residential growth has strained the country’s power generation capability, resulting in power outages during the hot summer months.
“This will be the largest combined cycle power plant in Kuwait and it is an important step in our plans to boost power capacity to meet continuing demand, which is projected to grow at about 8% a year,” said Dr Bader Shabeeb Al Shriaan, Kuwait’s minister of Electricity and Water.
Under its share of the contract, totaling $1.3 billion, GE Energy will supply equipment and long-term services. On the equipment side, GE will supply three combined-cycle power blocks, including six Frame 9FA gas turbines, which will be equipped with the latest emission reducing technology that will support Kuwait’s environmental needs, three steam turbines, nine generators and a turbine and plant level control protection system. Under the terms of the contract, GE also will operate and maintain the plant for seven years from the commercial operation date. The services contract obliges GE to guarantee availability of power during the summer months, when demand is the highest.
Hyundai Heavy Industries of South Korea will be in charge of engineering, procurement and construction for the Sabiya plant, which is located in the northern part of Kuwait.
GE will also provide the workforce to run the power station and provide training for the ministry of Electricity and Water employees to support growth plans and assure efficient power plant operation in accordance with the latest industry practices.
GE will begin shipping equipment by the middle of 2010. The plant is scheduled to come on line in two phase, the first to add 1300 MW of capacity to the grid in 2011, with the second phase adding the remaining 700 MW in 2012. Primary fuel will be natural gas, with distillate as a backup. The gas and steam turbines will be manufactured at GE facilities in the USA.
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