GE wins $1 billion contract to build Saudi Electricity Company natural gas power plant

GE Power generates over half of electricity for Saudi Electricity Company

GE says it has been awarded a landmark contract worth nearly $1 billionUSD for the engineering, construction, and provision of gas turbine services for the Waad Al Shamal combined cycle power plant of the Saudi Electricity Company.

Scheduled for completion in 48 months, the plant will support phosphate mining operations in the region, in turn driving industrialization and job creation for Saudi nationals.

GE (NYSE: GE)  will deliver the turnkey power plant, supplying four advanced GE 7F.05 heavy duty gas turbines and a GE steam turbine, and featuring solar innovation technology, the company said in a press release.

The 1,390 megawatt combined cycle plant will be able to provide the equivalent power needed to supply more than 500,000 Saudi homes.

Ziyad Al Shiha, CEO of Saudi Electricity Company says the Kingdom’s goal is to to strengthen power infrastructure to meet the growing demand for electricity and to accelerate all-round economic growth.

“Waad Al Shamal is a strategically located power plant that has tremendous potential to energize the local economy and create jobs for Saudis through its support to the industrial sector,” said Al Shiha.

“By awarding the contract to GE, we are further building on the long-term partnership we have with GE, with a focus on advanced technologies.”

One of the gas turbines will be assembled fully at the GE Manufacturing Technology Center in Dammam, underlining GE’s commitment to localization. The remaining gas turbines will be produced at GE’s manufacturing plant in Greenville, SC, and the steam turbine will be produced at GE’s manufacturing plant in Schenectady, NY.

“GE has been a long-term and trusted partner of SEC and we are committed to delivering our cutting edge competencies across the power sector of the Kingdom – from turnkey project development to accelerating power plant productivity and efficiency through our digital industrial solutions,” said Mohammed Mohaisen, president and CEO, GE gas power systems, Middle East and North Africa.

GE’s 7F.05 heavy duty gas turbine technology brings industry-leading flexibility to the Waad Al Shamal plant with a 10-minute startup to an 80 per cent load. It can accommodate a wide range of fuels lending greater flexibility to the operations while providing customers with lower fuel costs compared to previous GE technology.

GE Power will also extend its long-term service support to the plant to ensure seamless operations.

Earlier this year, GE signed a Memorandum of Understanding (MoU) with Saudi Electricity Company to set up a joint venture that will extend operations and maintenance support to SEC’s power plants in the Kingdom. GE will extend its advanced technologies and train Saudi Electricity Company staff to undertake the O&M services.

Today, GE’s advanced turbines support power generation in over 40 Saudi Electricity Company sites in the Kingdom.

GE Power currently has an installed base of more than 550 GE turbines generating over half of Saudi’s electricity and has advanced technology that supports the production of 180 million liters of clean water daily, delivered to the country’s most remote locations; GE Oil & Gas completed the first-phase expansion of the ‘Made in Saudi’ advanced manufacturing facility in Dammam, expanding capacity for manufacturing, testing and repair, as well as promoting job creation for Saudi nationals which builds on 70 per cent Saudization in Dammam.

GE Energy Management recently completed the network management system that connects the Gulf Cooperation Council International Authority (GCCIA) six member states’ energy systems, as well as the Gulf’s largest High Voltage Direct Current (HVDC) converter station in Saudi Arabia.