SEC awards GE Energy $500 million contracts for projects in the Kingdom

May 29, 2008

The Saudi Electricity Company (SEC) has signed contracts worth $500 million with Atlanta-based GE Energy to supply gas turbines and generators for power plant projects in the Kingdom.

GE Energy made the announcement in a press release issued today.

The first contract involves supplying gas turbine-generators for the 960-megawatt expansion of the Rabigh power plant on the Red Sea coast. The project is part of SEC’s initiative to provide more power to support the region’s economic and population growth.

Another contract is for gas turbines to be used by four SEC power plants, including a 260-megawatt plant in Jizan City, a 120-megawatt plant in Qunfutha City, a 111-megawatt facility in Al-Jouf and a 183-megawatt plant in Tabuk.

The GE gas turbines and generators will be manufactured at GE Energy's facilities in Greenville, South Carolina. and Schenectady, New York, respectively.

“Demand for power is growing at an estimated eight per cent per annum in Saudi Arabia. As the leading electricity supplier in the Kingdom, SEC consistently adapts to the evolving conditions to meet the increasing demand. Our relationship with GE, which spans over 40 years, has played an integral role in enabling us to successfully meet the need for additional power supply through efficient solutions,” said Ali Saleh al-Barrak, SEC’s president and CEO, in the press release.

Saudi Arabia is one of GE’s key growth regions. The company has more than 600 employees in the Kingdom with offices in Jeddah, Riyadh and the Eastern Province, as well as joint ventures in the fields of energy, health care and appliances.

GE’s current business portfolio in Saudi Arabia includes power and water, transportation and health care, as well as new opportunities in financial services and advanced materials.

GE Energy recently announced the groundbreaking of its Power Technology Center, a state-of-the-art service facility in Dammam that is being developed with its joint venture partner, Ali A. Tamimi Co. The new Center will expand GE's service capabilities for customers in Saudi Arabia and the greater region.