19.05.2010 Power Engineering Int.
State-controlled Saudi Electricity Co (SEC) has invited local and foreign investors to express interest in an 1800 MW oil fired power plant in the kingdom.
The planned conventional steam power plant in Al-Qurayah, south of the eastern city of Khobar, will use heavy fuel oil as a feedstock, SEC’s chief Executive Ali Al-Barrak said.
«This plant is under the Independent Power Project plan aimed to involve private sector in power production in the kingdom. Requests for proposals (RFPs) will be before the end of this year,» he told Reuters.
The deadline for the expression of interest is May 31, he said.
Saudi Electricity will buy all the power produced by the plant from the winning consortium which will run it on a build-own-operate basis, he said.
«After pre-qualification bidders will be asked to form consortiums and then they can make financial bids and the best bidder will be selected for talks to complete procedures. We aim to start production at the plant in 2015,» Al-Barrak said.
Al-Qurayah plant is the third of six planned IPP power plant projects in the kingdom. The six schemes should add 11 GW of capacity.
Power demand in the world’s largest oil exporter is rising at an annual eight per cent and is expected to triple to 121 GW from 40 GW currently, government officials say.