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22 December 2003 - Saudi Aramco has awarded International Power and Saudi Oger a contract to develop, own and operate four cogeneration Plants in Saudi Arabia. The parties signed agreements with Saudi Aramco, the national oil company of Saudi Arabia and the largest oil company in the world, for four cogeneration facilities with a total capacity of 1,074MW and 4.4 million lbs/hr of steam. The plants will supply power and steam to Saudi Aramco under four 20-year Energy Conversion Agreements.
Philip Cox, Chief Executive Officer of International Power, said: "We are delighted to have Saudi Aramco as our new customer and we look forward to meeting a major portion of their electricity and steam requirements in the Eastern Province of Saudi Arabia."
"This investment consolidates our position in our core Middle East region, enhances the contracted portion of our global portfolio, and marks our entry into one of the world's largest energy markets that has a growing demand for power and water," Mr Cox added.
International Power will own 60 per cent of the project company that will develop, own and operate the four cogeneration plants. Saudi Oger (a large Saudi-based construction and telecommunications company) will hold the remaining 40 per cent.
The financing for this project has begun and financial close is expected in the first quarter of 2004. International Power's total equity commitment to the project is estimated to be £50m ($88m).
The four sites are located in the Eastern Province of Saudi Arabia. Natural gas to fuel these plants will be supplied by Saudi Aramco and the power and steam generated by the plants will be used by Saudi Aramco for consumption in its processing plants.
Engineering, Procurement and Construction (EPC) will be carried out by Mitsui & Co. Ltd of Japan and Hyundai Heavy Industries of Korea, and GE will supply all the gas turbines.
Construction at all sites is expected to commence in March 2004, with a view to achieving commercial operation on a phased basis between March 2006 and December 2006.
Proposed cogeneration plants and respective power and steam capacity:
Plant Power (MW) Steam (000's lb/hr)
Ras Tanura 150 645
Ju'aymah 308 1,250
Shedgum 308 1,250
Uthmaniyah 308 1,250
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