Riyadh, 7 April 2013 - Dhuruma Electricity Company (DEC) today announced that the Riyadh PP11 Independent Power Plant (IPP) in Saudi Arabia achieved full commercial operation on 12 March 2013. PP11 is a gas-fired independent power project with a capacity of 1,729 MW, situated about 125 km west of Riyadh, the Kingdom's capital. Saudi Electricity Company (SEC) will be the sole off-taker of the power sold by the project company, Dhuruma Electricity Company, in which it also has a 50% participation. The Sponsor Consortium holding the other 50% of DEC is comprised of GDF SUEZ Group (20%), Aljomaih Holding Co (15%) and Blue Horizon, a subsidiary of Japan's Sojitz Corporation (15%).
The project is structured as a Build-Own-Operate arrangement with SEC. Construction started in June 2010 with Hyundai Heavy Industries (HHI) as EPC contractor. General Electric supplied the seven high efficiency gas turbines as well as the two steam turbines. The project stayed well on track during the three years of construction: it provided over 600 MW early power in June 2012 and over a 1,000 MW during the peak Ramadan hot summer month in KSA, and completed commissioning in combined cycle configuration ahead of schedule.
Riyadh PP11 will be operated and maintained by Dhuruma O&M Company that is jointly owned by GDF SUEZ (80%) and Aljomaih Group (20%).
President and CEO of the Saudi Electricity Company, Mr. Ali Saleh Al Barrak, said: "The Saudi Electricity Company is committed to cope effectively with the increasing demand for electricity through structured plans and programs that define projects, as well as the technical and financial requirements and human needs. It further utilizes the performance indicators as mechanisms for managing its strategic orientation and organizational performance." He confirmed that: "Through its efforts, the Company has succeeded in attaining concrete achievements in the development and reinforcement of the electrical system capacities in the Kingdom, in a manner that is in line with the Kingdom's recent rapid economic growth."
Mr. Al Barrak added that SEC is actively participating in the Government's efforts to facilitate the development of both Independent Power Producers (IPPs) and Independent Water and Power Producers (IWPP) in the Kingdom. To that purpose, SEC has introduced long term (20 years) power purchase agreement with the IPPs. Through its own I(W)PPs and other programs, SEC is expecting a further addition of 24,500 MW generation capacity, which will raise the total installed capacity in the Kingdom to 95,000 MW by 2020.
Shankar Krishnamoorthy, CEO & President of GDF SUEZ Energy Middle East, Turkey & Africa said: "Over the years, GDF SUEZ has earned a reputation of being a reliable developer and operator of electricity and water facilities in Saudi Arabia. By bringing PP11 into operation on schedule, we have honoured our commitment to the Saudi Electricity Company and we have sustained our reputation as a trusted partner. Our Group owes this success to the close alignment and cooperation of its project partners, contractors and suppliers and we want to thank them for that."
Sheikh Ibrahim M. Aljomaih, Vice Chairman of Aljomaih Energy and Water Company stated: "Aljomaih Holdings Co., being the Saudi partner in the Consortium, is very proud of this great accomplishment. The successful completion of a project of this size, safely and in such a remote location, is a tribute to the integrated work of the project team, their engineers, the EPC Contractor and SEC who, apart from being the off-taker, were responsible for resolving many key interface issues with the Kingdom's existing electrical networks. Providing vital power to the people of Saudi Arabia is one of Aljomaih's main duties and corporate objectives. It goes without saying that the efforts of DEC, SEC, the EPC contractor, the O&M group, the equipment suppliers and the GDF SUEZ-Sojitz-Aljomaih Consortium were remarkable in achieving such a target. Completing a project of this magnitude safely, within budget and ahead of schedule is a model that should be followed by all in the Kingdom of Saudi Arabia, as well as in the GCC region. Our sincere thanks and gratitude go to all our partners for a job well done."
Takeshi Yoshimura, Executive Officer of Sojitz Corporation commented: "Sojitz has been engaged in and has contributed to the development of the electricity sector through the sale of equipment in Saudi Arabia for more than 30 years. We are very excited and honoured with this great achievement, as PP11 is our first IPP in the Kingdom, as well as in the Middle East region. This could not have been realised without the mutual cooperation and strong commitment of all stakeholders and we would like to thank all of them. Our group remains strongly committed to the further development of the electricity sector in the Kingdom."
About Saudi Electricity Company
The Saudi Electricity Company (SEC), a Saudi Joint Stock Company, was incorporated by Royal Decree M/16, by merging all the power utilities and the projects of the Electricity Corporation into one entity that commenced operation on 5 April 2000. Its objectives, as set forth in its Articles of Incorporation, include generation, transmission, and distribution of electric power; to purchase, sell and provide electric power services in the Kingdom; invest in electric power projects within and outside the Kingdom; import and export electric power across the Kingdom's boarders; invest in projects for the supply of fuel to its wholly or partially owned subsidiaries; and to carry out and support research projects as regards service enhancement, power conservation, performance upgrade, environmental protection, and cost reduction. The company's vision is to help and improve the standards of living and enhance the economic competitiveness of the Kingdom of Saudi Arabia in all domains. It serves more than six million customers. The company continues to execute its plan to service an 8% annual growth in demand for electricity by preparing and developing a plan for boosting the electric system.
About GDF SUEZ Group
The GDF SUEZ Group ranks among the world's leading energy companies. GDF SUEZ develops its three core businesses (electricity, natural gas, and energy & environmental services) around a model based on responsible growth to provide essential services to its customers every day. The Group employs 218,900 people worldwide and achieved revenues of €97 billion in 2012. In the Middle East, Turkey & Africa region (META), GDF SUEZ has a direct equity interest in more than 27 GW of power capacity and almost 4.8 million m³/day of desalination capacity in operation and under construction. In the GCC, it is the leading operating independent power and desalinated water producer, with over 15 years of experience. In Africa, GDF SUEZ started construction of the 300 MW Tarfaya wind farm in Morocco and is actively pursuing a number of projects, also in Morocco and South Africa.
About Aljomaih Group
Founded in 1936 the Aljomaih Group is one of the largest business establishments in the Middle East and is fully owned by the Aljomaih family. The Company is mainly engaged in trading, distribution of branded products, manufacturing, investment, telecommunications, finance services, real estate and power & water. The company's main objective is to bring to Saudi Arabia the best Products, Goods, Services, Equipment and Technologies, ensure their market-place success by investing in the right-empowered organizations, production facilities, resources and/or Joint Ventures, and adhering to the rich traditions & values in all operations. By so doing, Aljomaih intends to make a positive difference in people's lives, contribute to the KSA economy and deliver attractive returns to all of its Shareholders.
About Sojitz Corporation
Sojitz Corporation is a Japan-based integrated trading company that operates in four business segments: Machinery, Energy and Metal, Chemicals and Consumer Lifestyle Business.
Media Contacts:
Brigitte Dierckx, Strategy & Communications Manager
GDF SUEZ Energy Middle East, Turkey & Africa
+971 4 45 70 721
brigitte.dierckx@ gdfsuezmeta.com
Nicholas McDonagh
RLM Finsbury
+971 50 457 2394
Nicholas.McDonagh@RLMFinsbury.com
© Press Release 2013