US-based CMS Energy’s joint venture with the Saudi National Power Company, Jubail Energy Company (JEC), has closed a $170 million limited recourse project financing for construction of a co-generation plant designed to produce up to 250 megawatts and 510 tons of industrial steam per hour.
The plant is expected to be in operation in 2005 and will be the first independent power plant in Saudi Arabia. The limited recourse bank facilities were arranged by Banque Saudi Fransi, Credit Agricole Indosuez, Arab National Bank, Arab Petroleum Investments Corporation and Riyad Bank.
The plant will be located within the Saudi Petrochemical Company's (SADAF) complex at the Jubail Industrial City in Saudi Arabia. CMS Energy owns 25 percent of JEC, which has entered into a long-term contract with SADAF for the entire output of the plant.
“Our strategy is to focus on our utility operations in the United States and sell non-performing international assets, when it makes financial sense to do so,” said chairman and chief executive officer of CMS Energy, Ken Whipple. “The entire output of this plant is committed to SADAF under a long-term contract, so this project also fits in with our strategy of reducing risk and producing more predictable earnings.”
CMS Energy is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation. — (menareport.com)
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