Saudi Arabia awards Siemens $1.5B deal for developing power plants alongside GE Vernova

Saudi Arabia awards Siemens $1.5B deal for developing power plants alongside GE Vernova

Oil and gas middle east

The new facilities will offer additional energy for residents and replace ageing oil-dependent power plants.Siemens Energy and GE Vernova have announced their support for constructing large combined-cycle power plants in Saudi Arabia, aligning with the country’s plan to increase its electricity supply to meet the needs of a growing population.The gas-fired facilities—Taiba 1 and 2, and Qassim 1 and 2—will be developed in the western and central regions of Saudi Arabia over the next few years. On June 24, GE Vernova confirmed it would build the Taiba 1 and Qassim 1 power plants, while Siemens Energy will support the construction of Taiba 2 and Qassim 2.Siemens Energy’s Taiba 2 and Qassim 2 power plants are set to be among the largest and most efficient in the world. Located in Saudi Arabia’s Western and Central regions, these projects will be developed over the next few years, according to reports. The Taiba 2 and Qassim 2 plants are expected to reduce carbon dioxide emissions by up to 60% compared to oil-fueled power plants. Initially, these plants will connect to the grid in simple cycle mode in 2026 and will be fully operational as combined cycle power plants by 2027. Siemens Energy will supply key technologies for these plants, providing around 4 gigawatts of electricity to the Kingdom. The new facilities will offer additional energy for residents and replace ageing oil-dependent power plants. The company emphasised that the new plants will reduce carbon dioxide emissions by up to 60% compared to oil-based plants. This initiative aligns with Saudi Arabia’s strategy to develop carbon capture and storage facilities in the medium term, supporting a carbon-free energy supply.The facilities are each designed to generate between 1.9 GW and 2 GW of electricity. GE Vernova announced that it had secured an order for six 7HA.03 gas turbines and two 7E.03 gas turbines from SEPCOIII Electric Power Construction, the engineering, procurement, and construction (EPC) company for Taiba 1, located about 60 miles southeast of Madinah city in western Saudi Arabia. Qassim 1 will be situated approximately 20 miles southeast of Buraydah city in the central region. GE Vernova also highlighted that its 7HA.03 gas turbines are capable of burning up to 50% hydrogen by volume when blended with natural gas. Saudi Arabia plans to invest $10 billion to expand its Master Gas System (MGS), which involves upgrading compression systems and laying new pipelines. This expansion is expected to significantly increase the network’s capacity.The enhanced MGS will make more natural gas available, allowing power plants in the kingdom to transition from crude oil to natural gas. Constructed in the 1970s and operational since 1982, the MGS has been utilised by Saudi Aramco to distribute natural gas throughout Saudi Arabia, primarily transporting associated gas from fields like Ghawar.

Sep 8, 2024 16:28

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