Saudi Aramco Cogen Projects
December 22 2003 - 1:00AM
UK Regulatory
RNS Number:5279T
International Power PLC
22 December 2003
Saudi Aramco Awards International Power and Saudi Oger Contract to Develop, Own
and Operate four Cogeneration Plants in Saudi Arabia
(London - 22 December 2003) International Power is pleased to announce that
together with its partner Saudi Oger, it has signed agreements with Saudi
Aramco, the national oil company of Saudi Arabia and the largest oil company in
the world, to develop, own and operate four cogeneration facilities with a total
capacity of 1,074MW and 4.4 million lbs/hr of steam in Saudi Arabia. The plants
will supply power and steam to Saudi Aramco under four 20-year Energy Conversion
Agreements.
Philip Cox, Chief Executive Officer of International Power, said: "We are
delighted to have Saudi Aramco as our new customer and we look forward to
meeting a major portion of their electricity and steam requirements in the
Eastern Province of Saudi Arabia."
"This investment consolidates our position in our core Middle East region,
enhances the contracted portion of our global portfolio, and marks our entry
into one of the world's largest energy markets that has a growing demand for
power and water," Mr Cox added.
International Power will own 60% of the project company that will develop, own
and operate the four cogeneration plants. Saudi Oger (a large Saudi-based
construction and telecommunications company) will hold the remaining 40%.
The financing for this project has begun and financial close is expected in the
first quarter of 2004. International Power's total equity commitment to the
project is estimated to be #50 million.
The four sites are located in the Eastern Province of Saudi Arabia. Natural gas
to fuel these plants will be supplied by Saudi Aramco and the power and steam
generated by the plants will be used by Saudi Aramco for consumption in its
processing plants.
Engineering, Procurement and Construction (EPC) will be carried out by Mitsui &
Co. Ltd of Japan and Hyundai Heavy Industries of Korea, and GE will supply all
the gas turbines.
Construction at all sites is expected to commence in March 2004, with a view to
achieving commercial operation on a phased basis between March 2006 and December
2006.
For further information please contact:
Aarti Singhal
+44 (0) 207 320 8681
Notes to Editors: -
Proposed cogeneration plants and respective power and steam capacity:
Plant Power (MW) Steam (000's lb/hr)
Ras Tanura 150 645
Ju'aymah 308 1,250
Shedgum 308 1,250
Uthmaniyah 308 1,250
Information about Saudi Oger and Saudi Aramco can be obtained by visiting
www.saudiaramco.com and www.saudioger.com respectively.
International Power plc is a leading independent electricity generating company
with 10,990MW (net) in operation and 610 (net) under construction. Among the
countries where International Power has facilities in operation or under
construction are Australia, the United States, the United Kingdom, the Czech
Republic, the UAE, Portugal, Turkey, Malaysia, Pakistan and Thailand.
International Power was listed on the London Stock Exchange and the New York
Stock Exchange (as ADRs), on 2 October 2000. The ticker symbol on both stock
exchanges is "IPR".
This information is provided by RNS
The company news service from the London Stock Exchange
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