Shaw wins power asset contract with Saudi Electric
EPC specialist in kingdom-wide appointment addressing 37 ailing plants
The Shaw Group, a fortune 500 heavy industry EPC specialist, has announced its receipt of a contract to implement a kingdom-wide management and performance program for Saudi Electricity Company’s fleet of oil and gas-fired power plants.
Under the terms of the contract, Shaw will implement a comprehensive asset management program, performing diagnostics on various aspects of 37 live power plants, with a focus on safety and maintenance, organisation and benchmarking, and environmental programs.
“The asset management and performance diagnostic program is designed to advance Saudi Electricity Company’s power plant operations and maintenance to international best practices,” said J.M. Bernhard Jr., Shaw’s chairman, president and chief executive officer.
The undisclosed value of the contract will be included in Shaw’s Power segment’s backlog of unfilled orders in the fourth quarter of the 2012 fiscal year.
“Shaw’s proven technical and operational expertise in power generation services continues to be an asset to Saudi Electricity Company in its plans to transform the electricity industry and provide greater network reliability for the Kingdom of Saudi Arabia,” said Bernhard.
The new deal joins a raft of existing Saudi Arabia awards for Shaw in the power sector.
In April 2010, Shaw was awarded a multi-phase study to define and recommend operational improvements for Saudi Electricity Company’s fleet of power plants.
Under another agreement Shaw, Toshiba and Exelon are pursuing the design, engineering, construction a fleet of new nuclear power plants in Saudi Arabia.
The Kingdom plans to invest approximately $112bn billion during the next 20 years to build 16 nuclear power units to offset rising domestic energy demand and retain its position as a leading hydrocarbons exporter.
Saudi Electricity Company is one of the largest utility companies in the world in terms of its installed power generation capacity.
Revenues for the 27,000-employee Shaw Group in the 2011 fiscal year hit $5.9bn.