Siemens wins Euro 1 billion order to build combined cycle power plant

The Siemens Power Generation Group (PG) has secured an order worth EUR One billion from the United Arab Emirates for turnkey construction of the 1500-megawatt combined-cycle power plant at Shuweihat.

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By  Massoud Derhally Published  December 3, 2001

The Siemens Power Generation Group (PG) has secured an order worth EUR One billion from the United Arab Emirates for turnkey construction of the 1500-megawatt combined-cycle power plant at Shuweihat. The purchaser and operator of the largest private power plant project in the Gulf region is a consortium comprising the state-owned Abu Dhabi Water and Electricity Authority (ADWEA), and the independent power companies CMS Energy of the US and International power from UK.

The project, which includes a plant that will be linked to a seawater desalination plant, was initiated by ADWEA. "This is the largest order that Siemens has ever posted in the Gulf region", stated Dr. Heinrich v. Pierer, President and CEO of Siemens AG, on the occasion of the signing of the contracts covering plant development, supply and erection.

The order includes a long-term maintenance agreement and the high-voltage switchgear for the new power plant, which are to be supplied by the Siemens Power Transmission and Distribution Group. The Shuweihat power plant complex will be located around 250 kilometers west of Abu Dhabi and is intended in the long term to become a power plant park with a total electrical capacity of around 5,000 megawatts and desalination plants with a daily production capacity of 300 million gallons (1.4 million cubic meters) of drinking water. This awarded contract represents the first stage.

As consortium leader Siemens is responsible for turnkey erection of the power plant and is to supply five gas turbines, two steam turbines, seven electrical generators and all the ancillary systems. Italian company Fisia Italimpianti, a consortium partner is responsible for the desalination facility. The plant, which is scheduled to go on line in 2004, will have a capacity of around 1,500 megawatts and produce 100 million gallons (455,000 cubic meters) of drinking water daily.

"With this order we are underpinning its position as the leading power plant supplier in the Gulf region,” said Pierer. “For us it is particularly important that during the ongoing power plant boom in the US, we are also represented in all the other important markets worldwide. This is true above all against the backdrop of an anticipated return to normality in the U.S. marketplace.”

“The global alignment of PG is one of the reasons why the Group has become a standout earner within Siemens AG in the space of only two years,” he continued. Today, Power Generation receives more than 90 percent of its orders from outside Germany. With orders on hand including reservations, currently amounting to EUR26 billion, the order books at the PG group are quite full.

"The Middle East, and here in particular the United Arab Emirates, is one of the most important markets for us", said Joachim Kundt, CEO of Siemens LLC. “The Shuweihat contract represents the direction in the government’s move towards privatisation. It is also a result of our expertise in the power sector in this region, built over the several decades.”

Siemens and the fossil power plant business of Westinghouse, which was acquired in 1998, have together supplied around 30,000 megawatts of power plant capacity to the Gulf region.

Shuweihat is the fifth power plant order that Siemens has secured in the United Arab Emirates. As consortium leader, Siemens and the Korean industrial corporation Hanjung built the Al Tawelah 2 combined-cycle power plant with seawater desalination facility 80 kilometers east of Abu Dhabi. The plant with a capacity of 770 megawatts has been in commercial operation since October 2001. The Mirfa power plant, also located in Abu Dhabi, is equipped with four Siemens gas turbines, and has been generating electricity since 1995. Further power plants featuring seawater desalination and gas and steam turbines supplied by Siemens were built in Jebel Ali in the Emirate of Dubai: Jebel Ali G equipped with five gas turbines with a combined capacity of 600 megawatts and Jebel Ali K, which is currently under construction and will be equipped with three gas turbines and two steam turbines with a combined capacity of 850 megawatts

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