532MW Expansion of Tihama Power Sites in Saudi Arabia
GDF SUEZ and International Power (70% owned by GDF SUEZ) are pleased to announce the expansion of their Tihama power sites in Saudi Arabia following an award from Saudi Aramco. Long-term Energy Conversion Agreements (offtake contracts) through to 2026 have been signed for this expansion. The expansion will take place at three of the four existing sites and will generate additional capacity of 532MW and 2,210GJ/h of steam. Following the expansion, Tihama will have a total capacity of 1,595MW and 8,112GJ/h of steam.
The ownership structure of the expansion is the same as the existing Tihama project, which is 60% owned by International Power and 40% by Saudi Oger. In 2003, International Power and Saudi Oger were originally awarded four 20-year Energy Conversion Agreements by Saudi Aramco to develop, own and operate the four cogeneration plants, which are located at Saudi Aramco’s gas and oil refineries.
The total project cost for the expansion is estimated to be approximately US$ 430million (€326 million), which is being funded by a mix of debt and equity in an 80:20 ratio. Full financial close of the project is anticipated shortly. The expansion programme is expected to complete by 2015.
Gérard Mestrallet, Chairman and CEO of GDF SUEZ, said “This project demonstrates further strong growth of our portfolio in the Middle East, and our ability to create additional value from our existing asset base. Our global expertise and skills in thermal power plants enabled us to deliver a compelling offer to Saudi Aramco. In the Gulf region, our Group is the leading independent power and desalinated water producer”.
Philip Cox, CEO of International Power, commented, “Saudi Arabia is a key market for International Power in the Middle East, with important projects supported by long-term power purchase agreements and backed by very high quality off-takers. We are delighted with our continued strong relationship with Saudi Aramco and with our increased presence in the country.”
Notes to Editors
An exchange rate of €1:US$1.321 has been used in this announcement. IPR-GDF SUEZ Middle East, Turkey and Africa has two existing power plants in Saudi Arabia. It owns 60% in Tihama (1,063MW, 5,902 GJ/h of steam) and 20% in Marafiq (2,741MW, 176 MIGD of desalinated water). It also owns 20% in Riyadh PP11 (1,729MW), which is currently under construction.