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Siemens wins Aramco’s $966m power plant order

Riyadh, August 6, 2013

Siemens has received a major order worth $966.8 million from Saudi Aramco for key power plant components for a major combined-cycle power plant in Saudi Arabia.

The power station is designed to deliver electricity to the Jazan Industrial City area in the southwest of the country and to the refinery of Jazan, which will additionally be supplied with process steam.

The plant will be fueled with gasified refinery residues, which contributes greatly to the preservation of the country’s energy resources. With an installed capacity of 4,000 megawatts, Jazan will be the largest gasification-based power plant site in the world.

“This is not only the largest order to date for Siemens from Saudi Aramco, but also a significant milestone in our successful cooperation with the biggest oil company in the world, and is proof of the success of our regionalization strategy,” said Michael Suess, member of the managing board of Siemens AG and CEO of the Energy Sector.

Siemens´ scope of supply includes 10 gas turbines - specially designed for synthesis gas (syngas) and diesel fuel, of which six will be manufactured in Saudi Arabia, five steam turbines, 15 generators and 10 heat recovery steam generators.

The gas turbine model (SGT6-5000F) to be used in Jazan is optimally suited for operation with syngas from gasification plants and has a successful track record of more than nine million operating hours.

“This new, highly efficient combined cycle power plant is an important part of our major project in the new economic zone in Jazan, and for this we must have efficient and reliable technology. We are looking forward to working with Siemens on this strategic project,” said Aramco Overseas Company managing director, Nabil Aldabal.

“Our flexible, efficient and proven technology will further contribute to support Saudi Arabia with its ambitious industrialization and economic development plans,” said Suess.

Saudi Arabia, with its large oil and natural gas reserves, is the largest economy in the Gulf region and a significant growth market for efficient fossil power generation. In this decade it is anticipated that Saudi Arabia´s population will increase from now about 28 to 34 million in 2020.
To meet the predicted annual rise in power demand of about six percent per year, the installed power generation capacity will have to at least double within 10 years from 67 gigawatts in 2012 to an estimated 140 gigawatts in 2020.

Siemens Saudi Arabia is investing in this growth market by constructing a facility in Dammam for the manufacturing of gas turbines and related equipment and for the servicing of this equipment in the country. Six of the ordered combustion gas turbines will be manufactured at this new facility.

The Jazan power plant comprises of five units. Commissioning of the first two blocks is scheduled for spring of 2016. The next block will follow in spring 2017. The other units will go online successively after this at intervals of a few months each. – TradeArabia News Service




Tags: Saudi Arabia | aramco | Siemens | power plant | Jazan | Turbines |

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