GE and Hyundai win Kuwait power contract

General Electric (GE) and Hyundai Heavy Industries have won a Kuwait government contract to build a US$ 2.6 billion, 2000-megawatt natural gas power plant in Sabiya, in the north of the country.

In line with its US$ 1.3 billion tranche of the contract, GE Energy will supply equipment and will operate and maintain the plant for the first seven years following commercial start-up. GE will supply three combined-cycle power blocks, including six Frame 9FA gas turbines equipped with emission reduction technology. The company will also supply three steam turbines, nine generators and a turbine and plant level control protection system.

Hyundai Heavy Industries will be responsible for engineering, procurement and construction of the Sabiya plant to the value of US$ 1.3 billion.

A statement from GE said that due to Kuwait's business and residential growth, the country's power generation capability had been strained to the point that during the hot summer months there were power outages.

"As part of our service deal to operate the plant, GE's support team will guarantee availability of power during the summer months where demand is at its highest," said a GE spokesperson. " GE will also provide training for Ministry of Electricity and water employees to support the country's ongoing growth plans, which will see energy demand grow by +8% each year."

The power plant at Sabiya is scheduled to come on-line in two phases. The first phase will add 1300 MW of capacity to the Kuwait electricity grid in 2011, while the second phase will add 700 MW of capacity in 2012.