State-owned Dubai Electricity and Water Authority has unveiled plans for a 1200 megawatt (MW) clean coal power plant and is seeking bidders to build what would be the first such project of its kind in the Gulf Arab region. The utility has issued a request for tenders for the plant, which will be built in two phases to generate 600 MW each when completed in 2020 and 2021 respectively, a statement from DEWA said on Tuesday.
When fully operational, the plant will contribute 12 percent of projected output under Dubai's 2030 Integrated Energy Strategy, the statement added. Given the Gulf's abundant oil and gas reserves, most power generation in the region is achieved through burning one of the two. However, Gulf nations are looking to diversify their energy mix to preserve such reserves for export, which generate significant sums for their economies.
Under Dubai's 2030 strategy, it aims to secure 71 percent of its energy from natural gas but also 12 percent each from coal and nuclear, with 5 percent from solar power. The scheme is a revision of the Hassyan independent water and power project which the Dubai government cancelled last April, according to Project Finance International, a Thomson Reuters unit.
That plant, which was earmarked to cost $1.3 billion, would have been gas-powered and generated 1600 MW of power. A consortium including Abu Dhabi National Energy Co , Japan's Marubeni Corp and South Korea's SK E&S Co Ltd said it had submitted the lowest bid to build the plant before it was cancelled. DEWA was currently looking to appoint advisers to the new coal-powered scheme, PFI added.
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Abu Dhabi Gas Development Co (Al Hosn Gas) has awarded Ametek Process Instruments an estimated $4.6m contract to supply UV process gas analysers for the Sulphur Recovery Units (SRU) and Tail Gas Treating Units (TGTU) at its Shah gas field in Abu Dhabi. Upon completion, the SRU-TGTU complex is expected to be the largest in the world. Each of the SRU's four processing trains is so large that it will require twin reaction furnaces with three tail gas analysers per train, making the project the largest single order for tail gas analyzers ever.
South Korea's Hyundai Heavy Industries (HHI) has been awarded a contract by Saudi Electricity Co (SEC) to build a SR12.2bn ($3.4bn) power plant in Shuqaiq, Reuters has reported. To be built within five years, HHI will install four steam generating units with highly efficient boilers to produce 2,640 megawatts of capacity, SEC said.
German power giant Siemens said on Tuesday it has won a $966m contract to supply key components for a major combined-cycle power plant in Saudi Arabia. The power station is designed to deliver electricity to the Jazan Industrial city area in the southwest of the country and to the refinery of Jazan, which will additionally be supplied with process steam.
State oil giant Saudi Aramco plans to build a new gas plant at al-Fadhili oilfield, which will have a processing capacity of 1 billion standard cubic feet per day of sour gas, three industry sources said. Aramco has stepped up its search for gas to boost production that will help meet rising domestic fuel demand. It completed in 2012 the Karan gas project, the kingdom's first gas field to be developed which was not associated with an oil field.