GDF SUEZ reinforces leading position in Middle East by commissioning 3,217 MW of new capacity
GDF SUEZ, together with its partners, has fully commissioned 3,217 MW of power generation capacity in the Middle East during the last month after three gas-fired power plants, Barka 3 and Sohar 2 in Oman as well as Riyadh PP11 in Saudi Arabia, reached commercial operation on schedule. The Group is the leading independent power generator in the region, with interests in 25,000 MW of operating capacity in the Gulf Cooperation Council (GCC) countries.
Gérard Mestrallet, Chairman and CEO of GDF SUEZ, commented: “The commissioning of these three projects on schedule confirms our leading position as an independent power and water producer in the Middle East and demonstrates our ability to successfully meet the increasing energy and water demand in these fast growing countries. We remain committed to the region and continue to see opportunities for further growth.”
Riyadh PP11 is a gas-fired independent power project with a capacity of 1,729 MW, situated about 125 km west of Riyadh. The project stayed on track during the three years of construction, providing over 600 MW of early power in June 2012 and completing the commissioning in combined cycle configuration ahead of schedule in March 2013.
Barka 3 and Sohar 2 are 744 MW gas-fired plants in Oman, located 50km and 250km northwest of Muscat respectively. Both plants completed full commissioning in the first week of April 2013 and their combined capacity of 1,488 MW increases the total installed capacity in Oman by more than 30%.
All three projects are fully contracted with high quality power off-takers for up to 20 years. The total capital investment for all three projects amounts to approximately US$3.8 billion, with debt financing representing over 70% of the overall funding required.
GDF SUEZ in META
In the Middle East, Turkey & Africa region (META), GDF SUEZ has a direct equity interest in 27,000 MW of power capacity and almost 4.8 million m³/day of desalination capacity in operation and under construction. In the GCC, it is the leading operating independent power and desalinated water producer, with over 15 years of experience. In Turkey, the Group has two gas-fired assets and runs a natural gas distribution company. In Africa, GDF SUEZ has started construction of the 300 MW Tarfaya wind farm in Morocco and is actively pursuing a number of projects in both Morocco and South Africa.
GDF SUEZ holds a 20% interest in the Riyadh PP11 plant, while the other shareholders are Saudi Electricity Company (50%), Aljomaih Holding Co (15%) and Blue Horizon (15%), a subsidiary of Japan’s Sojitz Corporation. Riyadh PP11 will be operated and maintained by Dhuruma O&M Company that is jointly owned by GDF SUEZ (80%) and Aljomaih Group (20%).
GDF SUEZ holds 46% in the Barka 3 and Sohar 2 power projects, alongside four other shareholders including Bahwan Engineering Group (22%), Sojitz Corporation (11%), Shikoku Electric Power Company (11%) and the Public Authority for Social Insurance (PASI) of Oman (10%). Both plants will be operated and maintained by Suez-Tractebel Operation and Maintenance Oman LLC (STOMO), which is 70% owned by GDF SUEZ.
Installed capacities for all projects referred to in this announcement are at 100%.
GDF SUEZ develops its businesses around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, combating climate change and optimizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF SUEZ employs 218,900 people worldwide and achieved revenues of €90.7 billion in 2011. The Group is listed on the Brussels and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone, Vigeo World 120, Vigeo Europe 120 and Vigeo France 20.