Siemens wins $590MM order for Rabigh 2 IPP combined cycle power plant

Source:Siemens

Siemens wins order valued at approximately $590 million for major components to the Rabigh 2 IPP combined cycle power plant in Saudi Arabia. (Photo shows Siemens SGT6-5000F gas turbine)

Siemens Energy (NYSE: SI) has received an order to supply six gas turbines, three steam turbines and nine generators for Rabigh 2 IPP combined-cycle power plant in Saudi Arabia. The customer is the Korean construction company Samsung C&T, which is erecting the facility for Al-Mourjan Project Company, a consortium under the direction of the independent power producer ACWA Power. Following project completion in mid-2017, Rabigh 2 IPP will have an installed electrical generating capacity of 2,060 megawatt to supply Makkah Province with electric power. Including commissioning support services, and a long-term maintenance service agreement the order value for Siemens amounts to approximately $590 million.

The project site at Rabigh is located in western Saudi Arabia on the Red Sea, about 150 kilometers north of the port city of Jeddah. Rabigh 2 IPP combined-cycle power plant will comprise three power plant units. For each of these units, Siemens is delivering two model SGT6-5000F gas turbines, one model SST6-5000 HI-L steam turbine, and three SGen6-1000A-series electrical generators. Siemens will also provide support services for erection and commissioning of the power plant. A long-term service agreement was also concluded for upkeep and maintenance of the gas turbines. All three power plant units are designed as multi-shaft configurations in which the each gas turbine and steam turbine drives its own dedicated generator. In addition to natural gas, these units can also be fired with petroleum, i.e. crude oil.

"This order is yet another indicator of the large demand in Saudi Arabia for efficient power generation solutions. Our high-efficiency F-class gas turbine is a perfect fit for the Saudi market," explains Thierry Toupin, CEO of Business Unit Gas Turbines and Generators at Siemens' Energy Sector. "The Rabigh 2 IPP project expands our already strong market position in this country even further." Siemens already announced in 2012 and 2013 the major orders it won in Saudi Arabia to supply the Qurayyah IPP and Jazan projects with its F-class gas turbines.

The Kingdom of Saudi Arabia presents vast market potential for highly-efficient combined-cycle power plants. The country's natural resources include some of the largest deposits of petroleum and natural gas in the world. To keep pace with and drive the nation's advancing industrialization and economic development, the installed electrical generating capacity there today - about 70 gigawatt (GW) - is expected to double by 2020 to 140 GW. Siemens is investing in this growth market, erecting a production facility in Dammam to manufacture gas turbines and associated equipment and provide power plant services for the local market.

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