Huge capital investment projects throughout the Middle East and parts of Asia are fueling a strong demand for power. The construction sector has undergone virtually unprecedented levels of growth for residential projects, as well as industrial schemes. Such is the rate of growth that in the Gulf area electricity demand will be higher than the average international increase, which will hoist it to the top of global energy generating markets.
The Rolls-Royce Trent 800 engine that powers Boeing 777 aircraft is also providing the core technology for industrial Trent packages for the Dolphin Gas Project.
Typical of the pace of construction is The Palm Islands, also referred to as The Palm Dubai, which are the world’s three largest man-made islands, under construction on the coast of the emirate of Dubai, in the United Arab Emirates (UAE). The project will increase Dubai’s shoreline by 120 km and create a large number of residential, leisure and entertainment areas, but it is just one of many ambitious projects in the region.
The World Energy Council estimates that members of the Gulf Cooperation Council (GCC), including Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and the Sultanate of Oman, require 100 000 MW of extra power over the next 10 years to meet demand. Industry observers estimate that US$57 billion will be spent overthe next six years just in the Middle
East and North Africa on the installation of new capacity. The need for additional capacity has been identified in many countries including Oman, Saudi Arabia, Kuwait,Bahrain, Iran, Jordan and Qatar.
Saudi Arabia is a particularly interesting case for would-be equipment suppliers in the power generation sector, with forecasts that a US$4.5 to US$6 billion investment is needed there annually over the next 15 years to cope with demand.
Saudi Arabia is among the largest percapita electricity consumers in the Middle East, and the country needs to expand its power and network capacity to support the country’s industrialization as power demand grows heavily each year.
Wärtsilä of Finland has been very active in the Middle East, and especially Saudi Arabia, for several decades and most recently was awarded a US$45.3 million turnkey contract to supply a power plant for a new cement works in Al Katrana, Jordan. The 49 MW plant will be delivered at the end of 2009 and the customer is Al Katrana Cement Co.
Wärtsilä was recently awarded a US$45.3 million turnkey contract to supply a power plant for a new cement works in Al Katrana, Jordan. Wärtsilä will supply seven of these 18V32 diesel generating sets and their related ancillaries.
During the past two years Wärtsilä has won orders for more than 500 MW of power-generating capacity from the cement industry alone in the Middle East. The installed power plants are all running successfully and are demonstrating high fuel efficiency with low generating costs using heavy fuel oil (HFO), according to the company. The contract includes design, engineering, supply, erection and commissioning of the diesel generating plant The new cement works is being built on a green-field site in Al Katrana, 90 km south of Amman in Jordan. The cement works will have a production capacity of 5000 tonnes/day.
The company will supply seven Wärtsilä 18V32 diesel generating sets and ancillaries, including coolers, filters, fuel oil pumps, lubricating oil pumps, cooling water pumps, and engine control and monitoring equipment. The engines will each provide a maximum continuous output of 8.1 MW at 720 r/min at local ambient temperatures.
Wärtsilä will also supply an exhaust heat recovery system for fuel heating. There will be four exhaust gas economizers so that two can be in operation with two on standby. They will be backed up by an LFO-fired boiler for starting and emergency operation. The plant will normally operate with five engines running to meet the baseload requirements of the cement works, with a sixth generating set on hot standby and a seventh under maintenance, thereby giving increased availability and flexibility. The engines will run on heavy fuel oil, but will use light fuel oil when starting and during emergency operations.
The generating plant will be able to meet the basic equirement in the cement industry of being able to handle the starting of the large electrical motors driving the cement kilns while keeping the voltage and frequency drops within permissible limits, said Wärtsilä.
In a move that underlines the growing importance of the Middle East, GE Oil & Gas announced plans this year to build a new facility in Ras Laffan Industrial City, Qatar, which it said will represent a “significant GE footprint” for the region and act as a service technology hub for customers. Site construction has started, and a ribbon-cutting ceremony is planned for April 2008. The GE Oil & Gas Qatar Service Center and Repair Workshop will expand GE’s local service capabilities, strengthening local technical support and reducing turnaround times for projects throughout the region, according to the company.
“Establishing the Qatar service complex reflects GE’s strong commitment to continue increasing our technology and service offerings for our customers in Qatar, one of the fastestgrowing centers for the oil and gas industry worldwide,” said Jeff Nagel, vice president, Global Services, GE
Oil & Gas.
GE has previously provided gas turbines, compressors and other equipment to support Qatar’s natural gas and LNG industries for more than 35 years. In addition, GE holds several contractual service agreements in Qatar, as well as providing integrity management services for existing gas pipelines in the country, and remote monitoring and diagnostic services for many machines installed in the region.
“GE’s new Qatar service center and repair workshop will help our customers in the region address their pressing needs to boost production and implement greater operational efficiencies, chiefly by keeping their equipment working at full capacity for as long as possible, while reducing the length of any maintenance outages,” said Mohammad Ayoub, operations leader and region general manager Middle East for GE Oil & Gas.
The new service center will represent a reference point for GE’s already existing local capabilities such as field service, installation, commissioning, troubleshooting, warranty management support and related services for GE equipment.
“The center will also introduce into Qatar new, high-tchnology capabilities for the inspection and repair of rotating equipment,” said Nagel. “It will provide a focal point for GE’s stateof-the-art repair technologies in the region, including balancing for large rotors, repair of hot gas and combustion parts, and compressor maintenance.”
The complex will include a repair shop, offices and auxiliary facilities. Total plant area will be more than 36 000 m2, with the covered area including more than 3000 m2. Around 60 people will work in the center over the next several years, including engineers, project managers, technicians, technical advisors, supervisors, and commercial and finance managers.
Rolls-Royce is providing industrial Trent packages for the Dolphin Gas Project. The 480-plus km Dolphin pipeline will supply natural gas from Qatar’s North Field to the UAE, which will then fuel power generation and water desalinization plants for at least the next 25 years. Six Rolls-Royce aeroderivative gas turbines will move natural gas through Dolphin’s undersea pipeline system.
Under an initial six-year, US$40 million agreement, Rolls-ryce will maintain the six compression packages, ensuring Dolphin Energy has uninterrupted service. The Trent also operates in power generation markets, and Sharjah Electricity and Water Authority (SEWA) is expanding the Wasit power station with two Trent 60 dual-fuel generating sets with a combined output of almost 80 MW operating at 40°C.
To date, Rolls-Royce has installed more than 4000 gas turbines in 120 countries, 10% of them in the Middle East, with the company saying that demand has grown “exponentially” in recent years and is expected to continue to do so for decades to come. Mitsubishi Heavy Industries Ltd. has also secured a full turnkey order for the construction of a heavy crude oil-fired thermal power generation and desalination plant in Shuqaiq, Saudi Arabia. The order was placed by the Shuqaiq Water and Electricity Company (SqWEC).
The commercial operation of the first power generation unit is scheduled to begin by the end of April 2010. SqWEC — composed of Public Investment Fund (PIF), Saudi Electricity Co. (SEC) and the consortium established by ACWA Power, Mitsubishi Corp. and Gulf Investment Corp. (GIC) — will supply electricity and water to Water & Electricity LLC (WEC) of Saudi Arabia. WEC is an equally owned joint venture between Saline Water Conversion Corp. (SWCC) of Saudi Arabia and SEC. MHI will be in charge of plant engineering, manufacturing, construction, installation and commissioning.
Mitsubishi Electric Corp. will supply generators. The power generation and desalination plant will be built on the Red Sea coast at Shuqaiq, in the country’s southwest. The power and water produced at the plant will be supplied through WEC — power to SEC southern grid and water to SWCC water distribution network to Abha, Jizan and other southern cities. The 1020 MW power plant will consist of three 340 MW steam turbines, heavy crude oil-fired boilers and generators.
The reverse osmosis (RO)desalination plant will have capacity to produce 216 000 m3 of desalinated drinking water per day. MHI said it has delivered numerous large-scale thermal power generation and desalination plants to the countries in the Middle East since the 1980s. In August 2005, the company received an order for a large-scale power, steam and water production plant from a consortium composed of Marubeni Corp.,
JGC Corp., Itochu Corp. and ACWA Power, slated to go into commercial operation in 2008.
On the strength of this latest order, which comes on the heels of a similar award last year, MHI said it will further boost its marketing activities in the Middle East region.