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| March 1, 2007 No.1157 | ||
| MHI Receives Full-Turnkey Order for Large-Scale Thermal Power Generation and Desalination Plant in Saudi Arabia For Shuqaiq Independent Water and Power Project |
| Tokyo, March 1, 2007 -- Mitsubishi Heavy Industries, Ltd. (MHI) has received a full-turnkey order for the construction of a heavy crude oil-fired thermal power generation and desalination plant in Shuqaiq, Saudi Arabia. The order was placed by the Shuqaiq Water and Electricity Company (SqWEC). The construction work will get under way from coming June, and the commercial operation of the first power generation unit is scheduled to begin by the end of April 2010. |
SqWEC - the special-purpose company (SPC) composed of Public Investment Fund (PIF), Saudi Electricity Company (SEC) and the consortium established by ACWA Power, Mitsubishi Corporation and Gulf Investment Corporation (GIC) will supply electricity and water to Water & Electricity LLC (WEC) of Saudi Arabia over an extended period of time. WEC is an equally owned joint venture between Saline Water Conversion Corporation (SWCC) of Saudi Arabia and SEC. The SPC and WEC signed Power and Water Purchase Agreement (PWPA) to supply water and power to WEC for 20 years, and based on it, the SPC will build the power generation and desalination plant in order to achieve the project goals. MHI will be in charge of plant engineering, manufacturing, construction, installation and commissioning. Mitsubishi Electric Corporation will supply generators. The power generation and desalination plant will be built on the Red Sea coast at Shuqaiq, in the country's southwest. The power and water produced at the plant will be supplied through WEC - power to SEC southern grid and water to SWCC water distribution network to Abha, Jizan and other southern cities. The 1,020 MW (megawatt) power plant will consist of three 340 MW steam turbines, heavy crude oil-fired boilers and generators. The reverse osmosis (RO) desalination plant will have capacity to produce 216,000 m3 of desalinated drinking water per day. RO reduces dissolved salt content in seawater to a drinking water level by filtering feed water through double pass of RO membrane. MHI has delivered numerous large-scale thermal power generation plants and desalination plants to the countries in the Middle East since 1980s. In August 2005, the company received an order for a large-scale power, steam and water production plant from a consortium composed of Marubeni Corporation, JGC Corporation, Itochu Corporation and ACWA Power, slated to go into commercial operation in 2008. The company's extensive delivery record and its plants' high operating rates contributed to the customer's decision to award this latest order to MHI. Saudi Arabia has the world's largest oil reserves, representing roughly one quarter of all confirmed oil deposits worldwide. Backed by a huge fiscal surplus from large increases in oil revenues resulting from the recent oil price surge, the country is now planning numerous power generation and desalination facility investment projects. On the strength of this latest large-scale project order, which comes on the heels of a similar award last year, MHI will further boost its marketing activities in the Middle East region. # # #
About Mitsubishi Heavy Industries Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,792 billion yen in fiscal 2005 (year ended March 31, 2006). MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website (http://www.mhi.co.jp). PRESS CONTACT: Hideo Ikuno: h.ikuno@daiya-pr.co.jp Tel: +813-6716-5277, Fax: +813-6716-5929 Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.) |
