Coal

Saudi Arabia’s Marafiq signs Yanbu power expansion deal with Korea’s Hanwha Group

29 July 2009 – Marafiq, the power and water utility for the Saudi Arabian industrial cities of Jubail and Yanbu, has signed a SR2.7 bn ($720m) contract with South Korea’s Hanwha engineering and construction company for setting up two steam-turbine generator plants in Yanbu.

President and CEO Thamer S. Al-Sharhan of Marafiq said the power generation units would be completed in 36 months. “The first unit is to start commercial operation by May 2012 and the second is to be commissioned by July 2012,” he said.

The combined generation capacity of the two plants will be 500 MW and will thus increase Yanbu’s present power output from 1000 to 1500 MW.

Doosan Heavy Industries will supply the boiler and turbine generator.

The project will also include the supply and installation of 380 kV transformers and cables, 115 kV transformers and cables, MV and LV switchgear, control systems by Siemens, environmental regulation systems, fire control systems and all civil works required for the project.