Germany’s Siemens has signed a deal worth US$400 million to delivery five F-class gas turbines for Fadhili, a combined heat and power plant in Saudi Arabia, the company said.
With an electrical generating capacity of about 1,500 megawatts (MW), the plant will supply about 400 MW of electricity and process steam to a new natural gas extraction plant in Fadhili which is located 100 kilometers northwest of Dammam in the Eastern Province of the Kingdom, Siemens said in a statement.
The additional 1,100 MW will be sufficient to supply power to 1.1 million 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.
South Korean company Doosan Heavy Industries & Construction Co., Ltd. Is purchasing the turbines, who is responsible for Engineering, Procurement and Construction (EPC) of the plant.
Furthermore, Siemens and joint venture partner 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.
"This project leverages even more opportunities to drive the industrialisation of the Kingdom in line with Vision 2030," said Jeffrey Dunlap, Siemens' senior executive vice president of sales PG MENA region. "The new power plant will reliably supply the gas extraction plant in Fadhili with electricity and process steam for a long time to come."
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. Together with two other new gas extraction plants, Fadhili will produce more than five billion standard cubic feet per day of so-called "non-associated" gas – natural gas that is extracted independently of oil. Saudi Aramco is investing a total of around 50 billion Saudi Riyals (USD 13.3 billion) in the Fadhili gas extraction plant.