We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 2 Mar 2011 03:54 PM

Font Size

- Aa +

Siemens eyes Saudi for power generation projects, growth

Kingdom's needs will triple from a current 40 gigawatts over the next 15 to 20 years , CEO of Siemens Energy ME says

Siemens eyes Saudi for power generation projects, growth
POWER ORDER: Siemens has won a more than $1bn contract to supply power plant components to Saudi Arabia

Siemens, which last week won orders exceeding $1bn in Saudi Arabia, is
eyeing the kingdom for power-generation projects as population growth
spurs electricity demand, an executive said.

“Saudi Arabia
for power generation is the biggest market and they have quite
tremendous growth,” said Dietmar Siersdorfer, chief executive officer
of Siemens Energy Middle East, in an interview.

The nation’s power needs will triple from a current 40 gigawatts over the next 15 to 20 years, Siersdorfer said.

Siemens,
like ABB Ltd. and Alstom, is pursuing growth in emerging markets as
governments add infrastructure.

Orders from developing nations surged
31 percent in Siemens’s fiscal first
quarter. Among contracts, the Munich, Germany-based company is
supplying parts for a combined-cycle power plant in Saudi Arabia, the
world’s biggest oil exporter.

Saudi Arabia’s Ras Az Zawr industrial complex, scheduled to start commercial operations in early 2014, will have 12 of Siemens’s gas turbines, 10 heat-recovery steam generators and five steam turbines.

The company
also plans to invest “millions of dollars” in a manufacturing plant
that will produce gas turbines in the kingdom, the first project of its
kind in the region, said Siersdorfer. The capacity will be additional
output rather than a replacement of production elsewhere, he said.

“We will create
an industry in Saudi Arabia around this heavy-duty manufacturing
equipment,” said Siersdorfer, adding the company aimed to create a
total of 4,000 jobs with the project, which is scheduled to be
operational in about 18 months. While catering to the local market in
the beginning, the plant could export to other countries.

Siemens
is also discussing the possibility of building gasification plants in
the kingdom that would use crude or waste from refineries, said
Siersdorfer.

Arabian Business: why we're going behind a paywall

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.