Kuwait selects GE and Hyundai to build new power plant

Kuwait City, Kuwait, September 14, 2009 — GE Energy and Hyundai Heavy Industries signed a $2.65 million contract with the Kuwait Ministry of Electricity and Water for a 2,000-MW power plant in Sabiya.

The government of Kuwait-owned plant will add power to the grid, allowing Kuwait to boost electricity production to help meet growing demand. When completed, the plant will raise Kuwait’s power capacity from current levels of around 11,000 MW. Kuwait’s business and residential growth has strained the country’s power generation capability, resulting in power outages during the hot summer months.

Under its share of the contract, totaling $1.3 billion, GE Energy will supply equipment and long-term services. On the equipment side, GE will supply three combined-cycle power blocks, including six Frame 9FA gas turbines, which will be equipped with the latest emission reducing technology that will support Kuwait’s environmental needs, three steam turbines, nine generators and a turbine and plant level control protection system.

Under the terms of the contract, GE also will operate and maintain the plant for seven years from the commercial operation date. The comprehensive services will provide GE’s technical experience and support to guarantee availability of power during the summer months, when demand is the highest.

GE will begin shipping equipment by the middle of 2010. The Sabiya power plant is scheduled to come online in two phases. The first phase will add 1,300 MW of capacity to the Kuwait electricity grid in 2011, with the second phase adding the remaining 700 MW in 2012. Primary fuel will be natural gas, with distillate as a backup.

The gas and steam turbines will be manufactured at GE facilities in the U.S.

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