Siemens secure $400m Saudi turbines deal

expat network

Siemens secure $400m Saudi turbines deal

Siemens has received an order for five F-class gas turbines for a combined heat and power (CHP) plant in the Kingdom of Saudi Arabia. With an electrical generating capacity of about 1,500 megawatts (MW), the plant will supply about 400 MW of electricity and process steam to a new natural gas extraction plant in Fadhili which is located 100 kilometers northwest of Dammam in the Eastern Province of the Kingdom.

The additional 1,100 MW will be sufficient to supply power to 1.1 million Saudi households. All five turbines will be produced at the Siemens Dammam Energy Hub (SDEH), the first manufacturing facility for gas turbines in Saudi Arabia and the largest in the Middle East. Purchaser is the South Korean company Doosan Heavy Industries & Construction Co., Ltd. who is responsible for Engineering, Procurement and Construction (EPC) of the plant.

Siemens and Kahrabel FZE, an affiliate of the ENGIE Group, signed a long-term service agreement for the gas turbines for the Fadhili CHP plant for a period of 16 years. End customer is a special purpose company consisting of ENGIE with a 40 percent share, Saudi Electric Company (SEC) and Saudi Aramco Power Holding Company (SAPHCO) with a share of 30 percent each.

The total order volume for Siemens is approximately USD 400 million. Siemens’ scope of supply encompasses five SGT6-5000F gas turbines, five SGen6-1000A generators, the control system SPPA-T3000 as well as assembly and commissioning on site.

The long-term service agreement covers maintenance services for the five turbines including Siemens’ advanced Power Diagnostics services, part of the company’s Digital Services for Energy portfolio. Siemens Power Diagnostics provides a detailed diagnosis of many actual unit conditions and recommendations for improvements to help minimize unplanned outages and maximize power generation availability.

The new power plant will be largely fired with so-called K-gas, a natural gas from the near Khursaniyah gas field which has a relatively low calorific value. Siemens and Saudi Aramco have been jointly testing the suitability of the F-class gas turbine for this special type of fuel.

All five gas turbines will be produced by the Siemens Dammam Energy Hub. In May 2016, the first gas turbine “made in Saudi Arabia” was produced in the SDEH. The facility jointly develops and strengthens local supply chains that increase local value added and create jobs for highly-skilled young Saudi talent.

Source: www.siemens.com

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.