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Siemens has received an order for five F-class gas turbines for a combined heat and power (CHP) plant in the Kingdom of Saudi Arabia
With an electrical generating capacity of about 1,500 megawatts (MW), the plant will supply about 400 W of electricity and process steam to a new natural gas extraction plant in Fadhili which is located 100km northwest of Dammam in the Eastern Province of the Kingdom. The additional 1,100MW will be sufficient to supply power to 1.1mn Saudi households.
All five turbines will be produced at the Siemens Dammam Energy Hub (SDEH), the first manufacturing facility for gas turbines in Saudi Arabia and the largest in the Middle East. Purchaser is the South Korean company Doosan Heavy Industries & Construction Co., Ltd. who is responsible for Engineering, Procurement and Construction (EPC) of the plant.
Furthermore, Siemens and Kahrabel FZE, an affiliate of the ENGIE Group, signed a long-term service agreement for the gas turbines for the Fadhili CHP plant for a period of 16 years. End customer is a special purpose company consisting of ENGIE with a 40 percent share, Saudi Electric Company (SEC) and Saudi Aramco Power Holding Company (SAPHCO) with a share of 30 percent each. The total order volume for Siemens is approximately US$400million.
“This is a great milestone for Saudi Arabia and Siemens. This project leverages, even more, opportunities to drive the industrialization of the Kingdom in line with Vision 2030,” says Jeffrey Dunlap, Siemens’ Senior Executive Vice President of Sales PG MENA R Sales PG MENA Region. “Thanks to our comprehensive service package, the new power plant will reliably supply the gas extraction plant in Fadhili with electricity and process steam for a long time to come. With the right technological solutions Siemens continues to demonstrate its local commitment to the Kingdom, its partners and the Saudi society.” The Saudi Vision 2030 represents the ambitious determination to transform the Kingdom economically and socially. It is the blueprint that guides Saudi Arabia as it prepares for a post-oil era.
Scheduled to be completed by the end of 2019, the Fadhili CHP project will play a key role in expanding the gas production and supply in Saudi Arabia to meet growing domestic energy demand.
Saudi Aramco is investing a total of around 50 billion Saudi Riyals (US$13.3bn) in the Fadhili gas extraction plant. All five gas turbines will be produced by the Siemens Dammam Energy Hub. In May 2016, the first gas turbine “made in Saudi Arabia” was produced in the SDEH. The facility jointly develops and strengthens local supply chains that increase local value added and create jobs for highly-skilled young Saudi talent.