Kuwait Signs $2.65 Billion Electricity Agreement to Boost Power Capacity and Support Country’s Continued Economic Development

Kuwait Ministry of Electricity and Water Selects GE, Hyundai Heavy Industries to Build New Power Plant in Sabiya

GE Energy yesterday announced that the Kuwait Ministry of Electricity and Water has signed a turnkey contract with GE and Hyundai Heavy Industries totaling $2.65 billion for a new, 2,000-megawatt (MW) power plant in Sabiya.

The Government of Kuwait-owned plant will add much needed power to the grid, allowing Kuwait to boost electricity production to help meet growing demand. When completed, the plant will raise Kuwait’s power capacity from current levels of around 11,000 megawatts. Kuwait’s robust business and residential growth has strained the country’s power generation capability, resulting in power outages during the hot summer months.

“This will be the largest combined cycle power plant in Kuwait and it is an important step in our plans to boost power capacity to meet continuing demand, which is projected to grow at about 8 percent a year,” said His Excellency Dr. Bader Shabeeb Al Shriaan, Kuwait’s Minister of Electricity and Water. “A reliable supply of electricity is critical to avoid future power shortages and to support the continued economic and social development of Kuwait. GE’s technological capability and strong local service support will help meet the need for responsible, efficient energy in Kuwait.”

Under its share of the contract, totaling $1.3 billion, GE Energy will supply equipment and long-term services.  On the equipment side, GE will supply three combined-cycle power blocks, including six Frame 9FA gas turbines, which will be equipped with the latest emission reducing technology that will support Kuwait’s environmental needs, three steam turbines, nine generators and a turbine and plant level control protection system. Under the terms of the contract, GE also will operate and maintain the plant for seven years from the commercial operation date.  The comprehensive services will provide GE’s technical experience and support to guarantee availability of power during the summer months, when demand is the highest.

“The Sabiya project demonstrates our commitment to deliver advanced technology solutions and services to support the infrastructure and population growth of Kuwait and the region,” said Joseph Anis, President of GE Energy for the Middle East.  “The reliable delivery of power and long-term performance of the gas turbines is key to this landmark project, which will help Kuwait meet the country’s rapidly growing demand for electricity.”

GE will also dedicate a highly skilled workforce to run the power station and provide training for the Ministry of Electricity and Water employees to support growth plans and assure efficient power plant operation in accordance with the latest industry practices. Hyundai Heavy Industries of South Korea will be in charge of engineering, procurement and construction for the Sabiya plant, located in the northern part of the State of Kuwait.

GE will begin shipping equipment by the middle of 2010. The Sabiya power plant is scheduled to come on line in two phases. The first phase will add 1,300 MW of capacity to the Kuwait electricity grid in 2011, with the second phase adding the remaining 700 MW in 2012.  Primary fuel will be natural gas, with distillate as a backup.

The gas and steam turbines will be manufactured at GE facilities in the USA.

GE in Kuwait
The Sabiya project builds on GE’s established presence in Kuwait. Since the early 1970s, GE has supported the infrastructure needs of the power, water, oil & gas as well as the aviation industries in the country. GE has provided equipment for the world’s largest wastewater treatment plant located in Sulaibiya, which can purify more than 100 million gallons of wastewater each day for agricultural and industrial uses. GE supplied its advanced F-technology power generation equipment for the 800-megawatt Shuaiba North power project, and supported the emergency power demands of 2007 with the successful implementation of LM6000 aeroderivative power generation units in the country. GE is providing fixed bed reactors for a new project planned by the Kuwait National Petroleum Company in Al Zour that will be the largest refinery in the Middle East.  ALAFCO Aviation Lease and Finance Company of Kuwait purchased 12 Airbus A350 aircrafts powered by the GEnx engine.

About GE Energy
GE Energy (www.ge.com/energy) is one of the world’s leading suppliers of power generation and energy delivery technologies, with 2008 revenue of $29.3 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.  Numerous GE Energy products are certified under ecomagination, GE’s corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.

About GE
GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company’s Web site at http://www.ge.com. GE is Imagination at Work.