GE Contracts for Salalah Independent Water & Power Project Total Nearly $300 Million
MUSCAT, Oman--Tuesday, July 06, 2010-- GE (NYSE: GE) has received contracts totaling nearly $300 million to provide advanced 6FA gas turbines and long-term services for the Salalah Independent Water & Power Project (IWPP), which will help support strong economic growth in the Dhofar region of southern Oman.
The plant, located in the Taqah area of Salalah, about 1,000 kilometers southwest of the Omani capital city of Muscat, will have a capacity of 445 megawatts of electricity and 15 million imperial gallons per day of desalinated water to help meet the region's growing power and clean water needs.
"Both the power and water demands in the Dhofar region have been increasing steadily over the past several years," said Bob Whitelaw, chief executive officer of the Oman Power and Water Procurement Company. "The Salalah IWPP is a critical part of the growth and investment plans for the Sultanate's continued social and economic development."
All of the electricity and water output from the plant will be sold under a 15-year power and water purchase agreement executed by the Oman Power and Water Procurement Company and Sembcorp Salalah Power & Water Company, which is 60 percent owned by Sembcorp Utilities and 40 percent owned by the Oman Investment Corporation.
GE is supplying five heavy-duty Frame 6FA gas turbines, which are equipped with GE advanced emission control technologies. GE also has signed a 15-year contractual service agreement (CSA) for the project, which will include the supply of parts, repairs and field services and will provide performance services for the gas turbine-generators and accessory equipment. To date, GE has service agreements, including CSAs, in place at more than 600 sites worldwide.
"The Salalah IWPP project demonstrates our commitment to deliver advanced technology solutions and services to support the Sultanate of Oman's and the region's growing power and water needs, which are critical to providing its citizens with a high quality of life," said Joseph Anis, GE Energy's president for the Middle East.
"This project is another example of the worldwide trend we are seeing toward the integration of power and water production at a single site, especially in the Middle East where population and industrial growth rates exceed many other regions of the world. Water and energy are interdependent; energy is needed to generate desalinated water and water is needed to produce energy. GE has the scale, diversity and expertise to effectively support power and water projects around the world," Anis added.
The Salalah project further expands the presence of GE's F-class gas turbine technology for projects in the Middle East. It also demonstrates the versatility, output range and operating flexibility of 6FA gas turbines, which have been used in a wide range of applications worldwide and have compiled more than two million hours of commercial service in 30 countries.In June of 2009, GE observed a milestone by shipping its 100th 6FA gas turbine for a project in Russia. GE's global fleet of all F-class gas turbines exceeds 1,000 units with more than 30 million total operating hours.
The Salalah IWPP project further expands GE's strong presence in Oman and the Middle East. More than 1,000 GE turbines have been installed throughout the Middle East, providing more than 70 gigawatts of electricity.
About GE
GE is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's website at www.ge.com.
GE serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With nearly 85,000 global employees and 2009 revenues of $37 billion, GE Energy www.ge.com/energy is one of the world's leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy---GE Power & Water, GE Energy Services and GE Oil & Gas---work together to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
Ken Darling
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Cynthia Mahoney White
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Lamia Jaroudi
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