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Saudi Arabia : Siemens secures gas-turbine contract for Saudi Arabia's CHP plant
Publish Date : 28-Feb-2017
Siemens has secured a contract in Saudi Arabia for 5 F-class gas turbines for a combined heat and power (CHP) plant.
The plant, which has a power production capacity of about 1,500 megawatts (MW), will provide nearly 400 MW of energy and process steam to a new natural gas extraction plant in Fadhili.
All 5 turbines will be made at the Siemens Dammam Energy Hub (SDEH), the first production plant for gas turbines in Saudi Arabia and the largest in the Gulf region.
South Korea's Doosan Heavy Industries & Construction, which is responsible for engineering, procurement and construction (EPC) of the plant, offered the contract.
Siemens and Kahrabel FZE, an affiliate of the Engie Group, also inked a long-term service contract for the gas turbines for the Fadhili CHP plant for a period of 16 years.
The customer is a special purpose firm that consists of Engie with a 40% stake, Saudi Electric Company (SEC) and Saudi Aramco Power Holding Company (SAPHCO) with a share of 305 each.
The total order volume for Siemens is valued at around $400m. The company's scope of supply covers five SGT6-5000F gas turbines, five SGen6-1000A generators, the control system SPPA-T3000 as well as assembly and commissioning on site.
The long-term service deal includes maintenance services for the five turbines including Siemens' advanced Power Diagnostics services, part of the company's Digital Services for Energy portfolio.
The new power facility will be largely fired with K-gas, a natural gas from the near Khursaniyah gas field which has a relatively low calorific value.
Siemens and Saudi Aramco have jointly tested the F-class gas turbine's suitability for this special type of fuel.
Jeffrey Dunlap, Siemens' senior executive vice president of sales PG MENA region, said, "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."