Saudi first IPP goes on stream

6 July 2005 - Saudi Arabia's National Power Company (NPC) announced Monday that the first Independent Power Plant (IPP) in Saudi Arabia had gone into commercial operation.

The concept of build, own, operate and transfer (BOOT) is new to Saudi Arabia..
The cogeneration plant, built at a cost of over $200m, can produce 250 MW and 510 tonnes of industrial stream per hour. The plant went into commercial operation on June 23. It is located in the Saudi Petrochemical Company's complex in Jubail Industrial City.

To utilise the output from the plant, SADAF has entered into a long-term contract with Jubail Energy Company who have built, owned and are operating the plant on a BOOT basis. Siemens AG Power Generation is the turnkey contractor for the project.

Jubail Energy Company is a joint venture between the NPC which holds a 75 per cent interest and CMS Generation, a subsidiary of US-based CMS Energy, which holds 25 per cent interest. The NPC is a joint stock company established in Saudi Arabia by Al Zamil and El Saif groups, each holding a 50 per cent interest.

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