Kuwait Ministry of Electricity and Water has signed a $2.65 billion turnkey contract with GE and Hyundai Heavy Industries to build a new 2,000-megawatt (MW) 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, said a GE statement.

Under the terms of the contract, GE also will operate and maintain the plant for seven years from the commercial operation date. The comprehensive services will provide GE’s technical experience and support to guarantee availability of power during the summer months, when demand is the highest.

When completed, the plant will raise Kuwait’s power capacity from current levels of around 11,000 megawatts.

“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 percent a year,” said Dr. Bader Shabeeb Al Shriaan, Kuwait’s Minister of Electricity and Water.

Kuwait’s robust business and residential growth has strained the country’s power generation capability, resulting in power outages during the hot summer months.

“A reliable supply of electricity is critical to avoid future power shortages and to support the continued economic and social development of Kuwait. GE’s technological capability and strong local service support will help meet the need for responsible, efficient energy in Kuwait,” he stated.

Under its share of the contract, totaling $1.3 billion, GE Energy will supply equipment and long-term services, said a top official.

“The Sabiya project demonstrates our commitment to deliver advanced technology solutions and services to support the infrastructure and population growth of Kuwait and the region,” said Joseph Anis, president of GE Energy for the Middle East.

“The reliable delivery of power and long-term performance of the gas turbines is key to this landmark project, which will help Kuwait meet the country’s rapidly growing demand for electricity,” he explained.

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.

GE will also dedicate a highly skilled 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, Anis stated.

Hyundai Heavy Industries of South Korea will be in charge of engineering, procurement and construction for the Sabiya plant, located in the northern part of the State of Kuwait.

GE will begin shipping equipment by the middle of 2010. The Sabiya power plant is scheduled to come on line in two phases.

The first phase will add 1,300 MW of capacity to the Kuwait electricity 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 US.-TradeArabia News Service