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13 November 2003 - Caterpillar Inc. announced Wednesday that its subsidiary, Caterpillar Power Ventures, has begun commercial operations at a 27 MW power generation plant located in the coastal town of Zarzis in Tunisia, North Africa.
By generating power from associated oil field gas that was previously flared into the atmosphere, the plant reduces emissions in the region. Additionally, a previously unutilized natural resource has now become a valuable commodity for the people of Tunisia.
The project owned by Societe d'Electricite d'El Bibane (SEEB) utilizes two turbines manufactured in San Diego, Calif., by Caterpillar subsidiary Solar Turbines Incorporated. The electricity generated from the new plant is being sold to the national utility, Societe Tunisienne de l'Electricite et du Gaz (STEG), under a 20-year power purchase agreement. This new plant is the first in Tunisia for Cat Power Ventures.
"We are very pleased to be a part of this project, which both enhances the quality of the environment and turns a previously unutilized resource into a productive one," said Paul Gaeto, President of Cat Power Ventures. "By capturing natural gas previously flared into the atmosphere, we're able to provide reliable power to the region while also making a significant environmental contribution."
More than 2.1 billion cubic feet per year of natural gas generated by the oil fields will be utilized by the Solar turbines to generate electricity for the region. The captured natural gas, which, until now, was flared, has an energy value equal to 16,157,820 gallons of gasoline or 384,710 barrels of oil.
The SEEB project is the first to be developed under Tunisia's Hydrocarbon Code legislation, which permits the construction of plants designed to capture oil field gas and create electricity. Caterpillar strongly supported the passage of this legislation.
Caterpillar Power Ventures developed and shares ownership in the project with Boston-based CME International, Inc., which specializes in developing energy projects around the world, and Canadian-based Centurion Energy International Inc., an International Oil and Gas Exploration and Production Company focused on North Africa. Solar Turbines and Belgian contractor MADsa managed construction of the project. Energy Services International, a wholly owned subsidiary of Solar Turbines, will operate the plant under a long-term contract. Financial details of the sale were not disclosed.
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