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  Acciona signs Qatar 110MIGD desalination contract

  27 November 2024

  Spain's Acciona has won the contract to build a seawater reverse osmosis (SWRO) plant as part of Qatar's Facility E independent water and power project (IWPP) located in Ras Abu Fontas.

  The water desalination package of the integrated facility will have a capacity of 110 million imperial gallons a day (MIGD), while the power generation plant will have the capacity to generate 2,415MW of electricity.

  According to a source close to the project, the contract Acciona won is part of the overall engineering, procurement and construction (EPC) package of the Facility E IWPP, which South Korea's Samsung C&T will implement.

  Julio De La Rosa Jurado, Acciona Agua Middle East director, confirmed the award in a social media post on 26 November, the day after Qatar state utility General Electricity & Water Corporation (Kahramaa) awarded the contract to develop and operate the Facility E IWPP project to the sole bidder led by Japan’s Sumitomo Corporation on 25 November.

  Sumitomo leads a consortium that comprises fellow Japanese utility developer Shikoku Electric, Seoul-headquartered Korea Overseas Infrastructure & Urban Development Corporation (KIND) and Korea Southern Power Company (Kospo).

  Samsung C&T has confirmed that the project's EPC package is valued at $2.8bn. The total project cost is roughly $3.7bn.

  Japan's Mitsubishi Power will be supplying the gas turbines for the power plant, as MEED reported.

  The four developer consortium members will establish a project company along with Qatar Electricity & Water Company (QEWC) and QatarEnergy (QE).

  According to Sumitomo, the equity distribution between the project company shareholders is:

  • Sumitomo Corporation: 17%
  • Shikoku Electric: 11%
  • Kospo: 6%,
  • KIND: 6%
  • QEWC: 55%
  • QE: 5%

  Project background

  The contract to develop the Facility E IWPP was first tendered in 2019. The three teams that submitted bids for the contract in August 2020 were:   

  • Engie (France) / Mitsui (Japan) / Yonden (Shikoku Electric, Japan)
  • Sumitomo / Kansai Electric (Japan)
  • Marubeni / Kyushu Electric (Japan)

  The original plan was for the Facility E IWPP to have a power generation capacity of about 2,300MW and a desalination component of 100MIGD once fully operational.

  Kahramaa revised the power plant’s design capacity to 2,600MW and sought alternative prices from bidders. 

  Kahramaa eventually cancelled and reissued the tender in September 2023. 

  MEED understands that the new target commercial operation date for the Facility E IWPP project has been moved to 2029. 

  The state utility’s transaction advisory team includes UK-headquartered PwC and Clyde & Co as financial and legal advisers, respectively, led by Belgrade-headquartered Energoprojekt as technical adviser.

  Facility E is Qatar’s fifth IWPP scheme. Completed and operational IWPPs include three projects in Ras Laffan – known as Facilities A, B and C – and Facility D in Umm Al-Houl.

  Awarded in 2015 and completed in 2018, Facility D was developed by a Japanese consortium of Mitsubishi Corporation and Tokyo Electric Power Company (Tepco). South Korea’s Samsung C&T was the EPC contractor.

  Related read: Facility E award marks key milestone

  Photo credit: Acciona

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13010478/main.jpg

  Jennifer Aguinaldo
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  Japanese firm to supply Facility E gas turbines

  27 November 2024

  Japan's Mitsubishi Power will be supplying the gas turbines powering Qatar's recently awarded Facility E independent water and power producer (IWPP) project located in Ras Abu Fontas, according to an industry source.

  Qatar state utility General Electricity & Water Corporation (Kahramaa) awarded a contract to develop and operate the Facility E IWPP project to the sole bidder led by Japan’s Sumitomo Corporation on 25 November.

  The Facility E IWPP scheme will have a power generation capacity of 2,415MW and a water desalination capacity of 110 million imperial gallons a day (MIGD).

  MEED reported in July that Sumitomo had submitted a proposal for the contract. It leads a consortium that comprises fellow Japanese utility developer Shikoku Electric, Seoul-headquartered Korea Overseas Infrastructure & Urban Development Corporation (KIND) and Korea Southern Power Company (Kospo).

  The developer consortium’s engineering, procurement and construction (EPC) partner is South Korea’s Samsung C&T, which confirmed that the project's EPC package is valued at $2.8bn.

  The total project cost is roughly $3.7bn.

  The contract to develop the Facility E IWPP was first tendered in 2019. The three teams that submitted bids for the contract in August 2020 were:   

  • Engie (France) / Mitsui (Japan) / Yonden (Shikoku Electric, Japan)
  • Sumitomo / Kansai Electric (Japan)
  • Marubeni / Kyushu Electric (Japan)

  The original plan was for the Facility E IWPP to have a power generation capacity of about 2,300MW and a desalination component of 100MIGD once fully operational.

  Kahramaa revised the power plant’s design capacity to 2,600MW and sought alternative prices from bidders. 

  Kahramaa eventually cancelled and reissued the tender in September 2023. 

  MEED understands that the new target commercial operation date for the Facility E IWPP project has been moved to 2029. 

  The state utility’s transaction advisory team includes UK-headquartered PwC and Clyde & Co as financial and legal advisers, respectively, led by Belgrade-headquartered Energoprojekt as technical adviser.

  Facility E is Qatar’s fifth IWPP scheme. Completed and operational IWPPs include three projects in Ras Laffan – known as Facilities A, B and C – and Facility D in Umm Al-Houl.

  Awarded in 2015 and completed in 2018, Facility D was developed by a Japanese consortium of Mitsubishi Corporation and Tokyo Electric Power Company (Tepco). South Korea’s Samsung C&T was the EPC contractor.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13010401/main.jpg

  Jennifer Aguinaldo
• 
  Developers attend Riyadh-Qassim project meeting

  27 November 2024

  Local and international developers and contractors attended a developers conference organised recently by the Saudi Water Partnership Company (SWPC) for the Riyadh-Qassim independent water transmission pipeline (IWTP) project in Riyadh.

  According to an industry source, companies that sent representatives to the meeting include the local firms AlBawani Group, Alfanar Company, Lamar Holding, Vision Invest, Nesma Company, Mutlaq Al-Ghowairi Contracting Company, Buhur Investment and several China-headquartered firms.

  The Riyadh-Qassim IWTP scheme will extend 859 kilometres, supplying both regions with potable water. It will have a transmission capacity of up to 685,000 cubic metres and feature 11 receiving gates.

  SWPC expects to receive bids for the contract to develop the project by February next year.

  The scheme is the third independent water transmission pipeline contract to be tendered by SWPC since 2022.   

  The first two are the 150km Rayis-Rabigh IWTP, which is under construction, and the 603km Jubail-Buraydah IWTP, which is under bid evaluation.

  Like the first two IWTPs, the Riyadh-Qassim IWTP project will be developed using a 35-year build-own-operate-transfer (BOOT) contracting model. It is expected to reach commercial operations in the third quarter of 2029.

  SWPC’s transaction advisory team comprises US/India’s Synergy Consulting as financial adviser and the local Amer Al-Amr and Germany’s Fichtner Consulting as legal and technical advisers, respectively.

  SWPC’s obligations under the water transfer agreement will be guaranteed by a credit support agreement entered into by the Finance Ministry on behalf of the Saudi government.

  The project is part of the kingdom’s National Water Strategy 2030, which aims to reduce the water demand-supply gap and ensure desalinated water accounts for 90% of national urban supply to reduce reliance on non-renewable ground sources.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13005684/main.jpg

  Jennifer Aguinaldo
• 
  Acwa Power to assume PIF hydrogen role

  26 November 2024

  Saudi-listed utility developer Acwa Power is understood to be assuming the mandate to deliver, operate and co-invest in future green hydrogen projects in Saudi Arabia, according to an industry source.

  This follows the cancellation in October of the planned launch of Energy Solutions Company (ESC), a Public Investment Fund (PIF) subsidiary, which was expected to become Saudi Arabia's national champion in low-carbon hydrogen production, storage, transportation and marketing services and solutions.

  MEED reported in July that in addition to driving the development of the green hydrogen market in the kingdom, ESC will also co-invest with Saudi Aramco in the state energy giant's blue hydrogen developments

  "Acwa Power will assume the mandate to be the partner and co-investor for all upcoming green hydrogen projects in Saudi Arabia, which makes sense given it is already implementing the first green hydrogen and ammonia project in the kingdom," notes a source familiar with the matter.

  This development closely resembles Acwa Power's role in bilateral renewable energy projects in the kingdom, which is being procured via the PIF's Price Discovery Scheme.  

  Acwa Power said it cannot comment on rumours or speculations.

  PIF is understood to own a 44% stake in Acwa Power, down from 50% before Acwa Power's 2021 initial public offering.

  There are at least three green hydrogen projects in the conceptual design or study stage in Saudi Arabia.

  All three have PIF as their main partner or one of their partners.

  These projects include those planned by teams separately led by France's Engie, Japan's Marubeni and South Korea's Posco. 

  Acwa Power, in partnership with Saudi gigaproject developer Neom and the US' Air Products, is developing the $8.4bn integrated green hydrogen and ammonia production facility in Neom.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13005695/main.gif

  Jennifer Aguinaldo
• 
  Asyad signs 40-year Suwaiq port concession

  26 November 2024

  Oman's Transport, Communications and Information Technology Ministry (MTCIT) has signed a concession agreement with the local logistics provider Asyad Group to manage and operate the Suwaiq Port for 40 years.

  According to local media reports, the agreement involves the construction of a sea berth, which is 500 metres long and 14 metres deep, designed to accommodate various sizes of ships and handle all types of cargo, including bulk, liquid, dry and general cargo and vehicles.

  The agreement entails the endorsement of modern handling systems to "improve operational efficiency and expand storage capacities to keep pace with growing demand".

  Asyad will also expand the Suwaiq Port area to more than 360,000 square metres to meet the needs of the growing local economy, notably in the food security sector.

  Port Suwaiq is located close to Asyad’s Khazaen Dry Port between the capital, Muscat, and Sohar.

  According to data on Asyad's website, it assumed the port’s management in September 2019.

  Shortly after, Asyad embarked on an ambitious development plan that "transformed the port into a major enabler of local trade and a key provider of import and export services to Oman’s businesses and manufacturers".

  The new agreement aims to help maintain the port’s role as a multi-purpose commercial hub that meets international standards, to help create opportunities to add new international shipping lines.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13005616/main.jpg

  Jennifer Aguinaldo