Abu Dhabi : New power and desalination project for GDF SUEZ in the Middle East
GDF SUEZ has won the contract and signed for 20 years the Power and Water Purchase agreement for the Shuweihat 2 power generation and seawater desalination plant, a major Independent Power and Water Project in Abu Dhabi, United Arab Emirates.
Shuweihat 2 is a greenfield, natural gas-fired installation that will deliver 1,500 MW of electricity and 454,610 cu.m./day of water. The plant will be located in the west of the Emirate, approximately 280 km from Al Taweelah, another power generation and desalination plant in which GDF SUEZ has a 20% stake. Completion and start-up of the Shuweihat 2 plant is scheduled for 2011.
GDF SUEZ owns 40% of Shuweihat 2, with the remaining 60% owned by Abu Dhabi Water and Electricity Authority (ADWEA), which issued the tender. An affiliate of ADWEA, the Abu Dhabi Water and Electricity Company (ADWEC) is the sole off-taker of the output in the plant, as stipulated in the 20-year Power and Water Purchase Agreement.
Dirk Beeuwsaert, CEO of GDF SUEZ Energy International, commented: “With Shuweihat 2, we now have 10 plants in our Middle East portfolio, the majority combining power and desalination. They represent over 12,000 MW of electricity and 2 million cu.m. of water per day, an increasingly significant part of GDF SUEZ’s overall energy assets. We firmly believe in the energy and water opportunities in the Gulf, which offer long-term off-take contracts within a well-developed legal framework in a region with strong growth.”
Demand for power in the United Arab Emirates is surging due to the population growth and an industrial boom, fuelled by record oil prices. Abu Dhabi aims to raise power generation capacity by 35% over the next 5 years, with demand for power rising by almost 80% by 2012. Water demand is estimated to grow at 5% per year.
ADWEA is planning to launch a similar project, Shuweihat 3, within the coming months to cope with the country’s energy and water needs.
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