The Saudi Electricity Company (SEC) has signed a Letter of Intent with Alstom for the construction of the third stage of the Shoaiba power plant.

Under a EUR1.9 billion contract to be finalised in the coming months, Alstom will supply, install and commission a new 1200 MW steam power plant at the Shoaiba site, 100 km south of Jeddah. The existing Shoaiba plant currently consists of eleven 400 MW units and were supplied by an Alstom-led consortium under two separate contracts.

Alstom will supply the equipment for the three new units, including boilers, steam turbines, 2-pole generators, sea water flue gas desulphurisation systems and the complete balance of plant. Delivery of the major equipment is scheduled for 2010.

Alstom’s consortium partner, Saudi Archirodon, will carry out all the associated civil works. The boilers are designed to burn both crude and heavy fuel oil and will use Alstom’s advanced low NOx tangential firing technology.

Electricity demand is growing at around seven per cent per year in Saudi Arabia.