The total value of the agreements is expected to be more than $500 million and the power plant expansions are expected to add over a hundred new local jobs
GE announced that it has been selected to provide gas turbine technology and services for four Saudi Electricity Company (SEC) power plant expansions that will support Saudi Arabia in meeting its growing power needs, especially during the hot summer months when electricity demand is at its peak. The total value of the agreements with GE is expected to be more than US$500 million and the power plant expansions are expected to add over a hundred new local jobs.
These contracts bring GE Energy orders for SEC projects in the last two years alone to over US$2 billion. To date, GE Energy power generation technology and services are supporting the generation of nearly half of the Kingdom’s installed capacity.
Eng. Ali Saleh Al Barrak, President and CEO, SEC, said: “These fast-tracked plant expansions are designed to meet peak summer demands. Our customers expect reliability, and over the years GE has built a reputation we can count on and trust. A stellar history of on-time delivery and well-proven gas turbine technology has made our 40 year relationship with GE a success story, with more than 400 GE turbines that are supporting close to 40 SEC projects around the Kingdom.”
The four SEC power plant expansions will add 1,680 megawatts of power to the Saudi grid, more than half of SEC’s planned annual increase of 3,000 megawatts. According to SEC, the Kingdom’s electricity demand has been growing at the rate of about six percent a year.
“Our ability to respond to our customers’ technology requirements and deliver fast-track projects on a large scale is a core capability of GE,” said Joseph Anis, GE Energy’s president and CEO for the Middle East. “In Saudi Arabia and around the Middle East, we continue to deliver energy technology solutions that have helped us earn the trust of our customers.
“As the leading energy technology provider in Saudi, GE continues to deliver localized power generation solutions to our long-time customers such as SEC and provide advanced technical training with our growing technology transfer and knowledge sharing initiatives,” added Anis.
In addition to supplying power generation technology, GE is providing all four plant expansions with technical advisory services as well as performance testing, which are critical to the successful installation of the plants. GE is also providing training for SEC technical teams to support them in the operation of the plants. Through the close relationship with SEC, GE has provided training to an increasing number of local SEC engineers and technicians annually. GE has steadily grown its local team to enhance customer service.
The new power plant expansion projects that GE will be supplying to include:
600-megawatt expansion of the SEC power plant in Qurayyah. GE will provide three 7FA gas turbines, one D11 steam turbine and four generators for combined-cycle service at the plant, which will supply additional power to Saudi Arabia’s Eastern region.
480-megawatt expansion of the PP-10 power plant 40 kilometers south of Riyadh City. GE will supply eight Frame 7EA gas turbines and generators, which will join 32 GE Frame 7EA gas turbines already installed at the site. GE’s 7EA gas turbines currently comprise more than 40 percent of SEC’s total fleet. The plant expansion will support the electricity needs of Saudi Arabia’s Central region.
480-megawatt SEC power plant expansion at Qassim, 350 kilometers north of Riyadh. GE has implemented two previous expansions at this site. For the latest extension, GE will provide eight Frame 7EA gas turbines and generators for simple cycle service, supporting SEC to meet the power needs of Saudi Arabia’s Central region.
120-megawatt expansion of the SEC power facility near Tabouk. GE will supply two Frame 7EA gas turbines and generators for simple-cycle duty at the site, which serves the Western region.
The Engineering Procurement Contracting companies (EPC) for the SEC power plants at Qurrayah, Qassim and PP10 will be Arabian BEMCO and while the EPC for the SEC power facility near Tabouk will be Al Toukhi Construction Group.
With nearly 80 years of experience in Saudi Arabia and 800 employees in the Kingdom, GE has expanded its energy presence in the Kingdom through public-private partnerships and a strong footprint of facilities providing service repair support and customer training centers in power, water and oil and gas.
In the last 24 months alone, GE has invested over US$100 million in Saudi Arabia. In addition to its existing seven facilities, GE will soon inaugurate its landmark GE Energy Manufacturing Technology Center in Dammam, one of GE’s largest worldwide. GE has also established an advanced energy training center, the GE Saudi Water and Process Technology Center and a manufacturing facility for heat exchangers in association with Ali A. Tamimi & Co.
As part of its commitment to knowledge sharing, GE has established the GE Energy Fuel Research Center at the King Fahd University of Petroleum & Minerals as well as several leadership development and cooperative learning programs with leading institutions.