Siemens will supply the key components and long-term power generation services for the 840 MW Maisan combined cycle power plant in Iraq.
CITIC Construction Co. Ltd., the Chinese engineering procurement and construction firm building the plant, and Iraqi developer MPC, part of Raban Al-Safina for Energy Projects (RASEP) awarded the contract valued at more than EUR 280 million to Siemens. The independent power project is expected to deliver first power by March 2021 and enter full combined cycle mode by early 2022. The plant will supply sufficient electricity to meet the needs of more than three million Iraqis, while also supporting the industrial sector.
The Siemens scope of supply includes two SGT5-4000F gas turbines, one SST5-4000 steam turbine, and three SGen5-2000H generators, along with the SPPA-T3000 control systems, transformers and related electrical equipment, and the fuel gas system.
“Iraq is undergoing an economic transformation, and as the country embarks on a series of ambitious infrastructure projects, efficient and reliable electricity will be essential to powering this development,” said Dietmar Siersdorfer, CEO of Siemens Middle East and UAE. “With a presence in the country that dates back more than 100 years, we are proud to support the generation of half of Iraq’s power supply. We are also committed to providing vocational training for up to 1000 Iraqis in order to develop a pipeline of talented local employees who can contribute to the new Iraq.”
Iraq is a key competitive market for both Siemens and GE. The country signed five-year “roadmap” agreements with the two companies last October. The country expects to spend upwards of US$14 billion on new plants and other energy infrastructure.
In awarding some projects to Siemens in April, Iraq’s prime minister said the German company was well-placed to win the bulk of future deals. However, recent media reports suggest that U.S. political pressure on Iraq to award more contracts to US-based GE may have had an impact.
This latest project will mark an important power generation milestone in Iraq, said Karim Amin, CEO of Power Generation at Siemens Gas and Power.
“The state-of-the-art power island that will be installed by Siemens, including the latest technology of F-class gas turbines, will turn the Maisan power plant into the most efficient gas-fired combined cycle power plant in Iraq,” Amin said. “This is very critical for the economics of the long-term operations and the effective utilization of fuel.
“In addition, the long-term service agreement is designed to ensure increased efficiency and maximum availability of the power plant while also providing technical training for local Iraqi staff on the operation and maintenance (O&M) front. This will support skills development and knowledge transfer to the Iraqi people.”
Siemens will also utilize its Power Diagnostics Services (PDS), part of the Omnivise Digital Services portfolio. The company’s PDS solution combines asset data with industry expertise to deliver information that allows faster and accurate predictive analysis for effective decision-making. This enables improved operational planning to increase availability, mitigate risks, and optimize operational costs.
Siemens and the Ministry of Electricity of the Republic of Iraq recently signed an implementation agreement to kick off the actual execution of the roadmap for rebuilding Iraq’s power sector. As part of the implementation agreement, the two agreed on the awarding of contracts valued at approximately EUR 700 million for phase 1 of the roadmap. This includes the EPC construction of a 500 MW gas-fired power plant in Zubaidiya, the upgrade of 40 gas turbines with upstream cooling systems, and the installation of thirteen 132 kV substations as well as 34 transformers across Iraq.
“Maisan combined cycle power plant project will be one of the unique projects in a series of power generation projects in Iraq’s history that will stand out due to its combining innovative German technology with an experienced Chinese EPC service provider,” said Saadi Saihood, chairman of Raban Al-Safina Group, said. “We are confident that such a strong team will enable us to deliver a successful project that will benefit millions of Iraqis.”