International Power and Saudi Oger have announced the signing of Energy Conversion Agreements (ECAs) for an expansion of their joint venture Tihama's power plants in Saudi Arabia.

The expansion follows an award from Saudi Aramco. International Power is owned 70 per cent by GDF Suez.
 
The expansion of 532 MW and 868 tons/hr of steam at three of Tihama’s four sites - Ju’aymah, Shedgum and Uthmaniyah - located at Saudi Aramco’s gas and oil refineries will be backed by long-term ECAs through to 2026.
 
Engineering, procurement and construction will be carried out by Hyundai Heavy Industries of South Korea and General Electric will supply the gas turbines.

Importantly, the technology to be used for the expansion will ensure additional power output with lower carbon footprint. Construction at all three sites is expected to start in May 2012 with a phased commencement of commercial operations between late 2014 and mid 2015.
 
Shankar Krishnamoorthy, president and CEO of IPR-GDF Suez Middle East, Turkey & Africa, said: “We are delighted with the continued trust that Saudi Aramco has placed in Tihama Power. This expansion of Tihama Power further consolidates International Power’s leadership position in the Middle East market. It also further enhances the contracted portion of our global asset portfolio and demonstrates our commitment and flexibility to meet the exacting standards of performance that valued customers like Saudi Aramco expect from International Power.”
 
Joseph Aboudiwan, head of Saudi Oger Utilities Division, said: “Saudi Oger’s active role in the development of this expansion underscores our deep commitment to the realization of private utility schemes in the Kingdom of Saudi Arabia and regionally. We would like to take this opportunity to thank our valued client Saudi Aramco for their trust in Tihama Power, and thank Tihama Power's management and staff for building this trust over the years.

'As a major shareholder in Tihama Power, Saudi Oger is committed to ensuring that this expansion is successfully completed to the full satisfaction of Saudi Aramco.”

The joint venture of International Power and Saudi Oger was originally awarded four 20-year ECAs by Saudi Aramco in 2003 to develop, own and operate four cogeneration plants in Saudi Arabia. The existing four cogeneration plants have a total generating capacity of 1,063 MW and 2,000 tons of steam per hour.
 
The plants were commissioned in 2006 under a special purpose vehicle company, Tihama Power Generation Company, owned 60 per cent by International Power and 40 per cent by Saudi Oger. -- TradeArabia News Service