JEDDAH: GE Energy has signed a contract for nearly $1 billion to supply more than 30 Frame 7EA gas turbines for the Saudi Electricity Company’s (SEC) Riyadh Power Plant 10 (PP10). This project, the latest in a series of GE contracts for SEC power projects, will add 2,000 megawatts of much-needed power to help support the region’s economic and population growth.
The PP10 project addresses energy shortages during the summer months and when completed, will increase the power capacity in SEC’s central operating area by 20 percent, helping to improve the reliability and delivery of power to SEC’s customers. PP10 is the latest expansion at SEC’s Riyadh site, which currently has a total power output of 10,000 megawatts.
The PP10 agreement, which was booked in December 2008, brings GE’s orders for SEC projects to nearly $2.5 billion in the last three years. Over the last five years, GE has received commitments to supply 115 gas turbines for SEC projects.
“We have established a track record of delivering power generation solutions that are reliable, flexible and available to help meet energy demands, which has solidified our position as a leading supplier of gas turbines for Saudi Arabia,” Joseph Anis, GE Energy’s region executive for the Middle East, told Arab News in an interview over the phone from Dubai yesterday.
Asked about the impact of the global financial crisis on GE Energy’s projects, Anis, who began his career with GE in 1997 and rose to his present position in 2007, said: “We are not affected at all. On the contrary, our operations continue to expand as the power generation business is seeing strong growth in the region.” He added: “Saudi Arabia is one of the key markets for GE in the Middle East. GE’s involvement in the region and its presence and investments in the Kingdom have been strong due to its new innovative technologies and the region’s positive energy trends.”
Anis said: “Saudi Arabia is taking concerted efforts to prepare the electricity sector organizationally and structurally through public and private partnerships to meet the Kingdom’s demand for power, which is growing at an estimated eight percent per year. The government’s stated goal is to add 30 gigawatts of generating capacity to the electricity grid by 2020,” he said.
Giving details of the new contract announced yesterday, Anis, who is responsible for driving GE Energy’s growth and execution in the region across the entire GE Energy portfolio, said: “The PP10 project builds upon the strong relationship with SEC that we have developed over the years. This also reflects our commitment to helping Saudi Arabia and the Middle East meet the region’s growing need for reliable power to support economic and infrastructure growth through innovative technology solutions and a growing local presence.”
Saudi Arabia is one of GE’s key growth areas, featuring a workforce of more than 600 employees — GE’s largest in the region — and offices in Riyadh, Jeddah and the Eastern Province as well as joint ventures in the fields of energy, health care and appliances. GE’s current business portfolio in the Kingdom includes power and water, oil and gas, transportation and health care, in addition to new opportunities in financial services.
Last April, GE Energy announced the groundbreaking of its Power Technology Center, a new state-of-the-art service facility in Dammam.
GE has been active in the Middle East since the 1930s, and today has regional management and project management offices as well as local repair and service facilities to serve its customers in the region.
