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SEC, GE clinch $300m deals for 6 power plants expansion

RIYADH - GE Monday signed contracts totaling almost $300 million with the Saudi Electricity Company ( SEC ) to supply 13 gas turbines and associated services for the expansion of six power plants at various locations across the country. The expansions will add nearly 800 megawatts of power to the Saudi grid by the summer of 2013, in time to support peak electricity demands and reduce the risk of blackouts.

The new contracts bring the number of GE turbines delivered for SEC projects to nearly 200 turbines in the last five years. To date, GE power generation technology and services are supporting the generation of nearly half of Saudi Arabia's electricity. The latest plant expansions support SEC 's plans to expand its power capabilities across Saudi Arabia, including remote areas of the Kingdom.

"The expansion projects are part of our overall strategy to add an average of 4,000 megawatts of power annually to the grid in Saudi Arabia as we continue to face a growing demand for reliable electricity," said Eng. Ali Saleh Al Barrak, president and CEO of SEC . "We have been working with GE for more than 40 years, and the new contracts reflect our continued trust in GE's power generation solutions and ability to respond to our technology requirements and meet compressed project schedules."

In addition to supplying 13 Frame 7EA Gas Turbines and associated generators for the plant expansions, GE also will provide technical advisory services and performance testing, which are critical elements in ensuring that the equipment is successfully installed and running reliably to provide power to residents in remote areas. To further expand GE's knowledge sharing initiative in the Kingdom, GE also will provide training for SEC engineers in the operation and maintenance of the gas turbines.

"We are very pleased to support SEC in their efforts to bring reliable electricity to rural regions of the Kingdom of Saudi Arabia," said Joseph Anis, president and CEO of GE Energy in the Middle East. "As the leading energy provider in Saudi Arabia, GE continues to deliver localized power generation solutions to our long-time customers such as SEC and provide technology transfer to the region through our advanced technical training and knowledge sharing initiatives."

The six sites for the expansions are Wadi Al Dwasir, Tabuk, Qurrayat, Sharura, Ala-Wajh and Najran simple-cycle power plants. The gas turbines will be manufactured in GE's factory in Greenville, South Carolina, and will be delivered to the various sites during the fourth quarter of 2012 and the first quarter of 2013, with commercial operation to begin in May 2013, in time to meet the summer peak demand.

With tens of millions of hours of service in many applications, the GE 7EA Gas Turbine allows for flexibility in power generation needs and fast, low-cost additions of incremental power. It can accommodate a wide range of fuels, from high hydrogen to residual containing "heavy fuel oil," by utilizing advanced fuel handling equipment, power nozzles and bucket cooling, thermal barrier coatings and multiple-fuel combustion systems.

© The Saudi Gazette 2011