GE bags $141mn Saudi Electric service contract

GE bags $141mn Saudi Electric service contract
Published: 10 October 2017 - 3:48 a.m.
By: Baset Asaba

GE Power has signed a multi-year service agreement with Saudi Electricity Company (SEC) to provide comprehensive maintenance, parts and repairs services for eight GE 7F.05 gas turbines at Riyadh Power Plant 12 (PP12). The $141 million contract will span a period of nine years.

Ziyad Al Shiha, President & CEO of Saudi Electricity Company, said “GE has supported the development of Saudi Arabia’s energy sector for over 80 years and has a deep understanding of our requirements. PP12 is an important project in our efforts to strengthen the Kingdom’s electricity infrastructure. This new agreement between SEC and GE will enable us to achieve higher levels of operational productivity, while lowering unplanned downtime at the plant.”

GE supplied the highly efficient 7F.05 gas turbines under a previous contract with SEC, with four units entering commercial operations in 2014, followed by the rest a year later. Operating in combined cycle mode, the turbines add about 1,800 megawatts (MW) to the national grid. Under the new service agreement, not only will GE’s team provide support on-site but equipment at PP12 will also be monitored by the Saudi PowerGen Efficiency Center (SPEC), located in the GE Manufacturing & Technology Center (GEMTEC) in Dammam. A collaboration between GE and SEC, SPEC monitors over 500 power generation trains round-the-clock to enable seamless operations and reduce downtime.

“We are committed to offering the latest solutions and strengthening our local presence to support SEC’s assets and resource-use optimization,” said Joseph Anis, President & CEO of GE’s Power Services business in the Middle East & Africa. “The advanced monitoring and diagnostics services provided through SPEC will help to boost the plant’s operational reliability and mitigate unplanned outages.”

GE 7F.05 gas turbines installed at PP12 bring industry-leading flexibility, efficiency, lower emissions and the lowest lifecycle costs in their class. The 7F.05 achieves 60 percent efficiency, providing SEC with lower fuel costs and setting a new standard for F-class efficiency. The turbines also offer wide fuel flexibility including natural gas, distillate oil, Arabian Super Light crude and a variety of other fuels. GE is also providing 12 additional units of 7F.05 gas turbines for SEC’s PP13 and PP14 facilities.

“GE is proud to support the generation of more than half of the Kingdom’s power supply,” added Hisham Albahkali, GE’s President & CEO for Saudi Arabia and Bahrain. “From providing gas turbine technologies to long-term services, we are delivering end-to-end support for power plants across the Kingdom to help meet the evolving energy needs of citizens and industrial users.”

GE has more than 500 gas turbines installed in the Kingdom, which provide over 50 percent of the country's electricity. With a presence of more than 80 years, three offices and seven facilities, Saudi Arabia accounts for the largest GE workforce in the Middle East with over 2,000 employees driving the Energy, Healthcare and Transportation sectors.

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