Siemens bags Saudi gas turbine supply contract
The contract was awarded by South Korean company, Doosan Heavy Industries & Construction
Siemens has received an order for five F-class gas turbines for a combined heat and power (CHP) plant in Saudi Arabia.
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.
All five turbines will be manufactured at the Siemens Dammam Energy Hub (SDEH), the first manufacturing facility for gas turbines in Saudi Arabia and the largest in the Middle East.
The contract was awarded by South Korean company, Doosan Heavy Industries & Construction, who is responsible for engineering, procurement and construction (EPC) of the plant.
Siemens and Kahrabel FZE, an affiliate of the Engie Group, also signed a long-term service agreement for the gas turbines for the Fadhili CHP plant for a period of 16 years.
The client is a special purpose company consisting of Engie with a 40% share, Saudi Electric Company (SEC) and Saudi Aramco Power Holding Company (SAPHCO) with a share of 305 each.
The total order volume for Siemens is approximately worth $400m.
Siemens' scope of supply encompasses 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 agreement covers 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 plant 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 been jointly testing the suitability of the F-class gas turbine for this special type of fuel.
"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," said Jeffrey Dunlap, Siemens' senior executive vice president of sales PG MENA region.
"Thanks to our comprehensive service package, 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 facility is scheduled to be completed by the end of 2019.
Together with two other new gas extraction plants, Fadhili will produce more than five billion standard cubic feet per day of the natural gas that is extracted independently of oil.
Saudi Aramco is investing a total of around $13.3bn (SAR50bn) in the Fadhili gas extraction plant.