Energy

TAQA announces sale of stake in Shuweihat CMS International Power Company to Sumitomo Corporation

The Abu Dhabi National Energy Company PJSC (TAQA), a publicly listed company on the Abu Dhabi Securities Exchange (ADX: TAQA), announced that it has entered into a share purchase agreement with Sumitomo Corporation for the sale of a 20% interest in Shuweihat CMS International Power Company (SCIPCO) and a 50% interest in Shuweihat O&M Limited Partnership ("SOMLP"). The sale concludes an international competitive bid process launched by TAQA earlier this year.

SCIPCO owns the Shuweihat S1 plant ("S1 Plant"), a power generation and water desalination facility near Jebel Dhana, Abu Dhabi with a net production capacity of 1,500 megawatts of electricity and 100 million gallons of desalinated water a day. SOMLP is the company responsible for the management, operation and maintenance of the S1 Plant. The S1 Plant commenced commercial operations in June 2005.

"We were pleased with the high level of interest from world-class, international organizations looking to foster relations with TAQA and to expand into the power market in the United Arab Emirates through this competitive bid process. We look forward to partnering with Sumitomo and benefiting from their international expertise," said Peter Barker Homek, TAQA's Chief Executive Officer.

Following this transaction, TAQA will retain a 54% interest in SCIPCO, Abu Dhabi Water & Electricity Authority ("ADWEA") and International Power Plc ("IPR") will continue to hold 6% and 20%, respectively. IPR will also retain its 50% interest in SOMLP.

Petrofac, Mubadala set up JV

"Petrofac Limited, the international oil & gas facilities service provider, and Mubadala Petroleum Services Company LLC (MPSC), a wholly-owned subsidiary of Mubadala Development Company, announced their plans to establish a joint venture company, Petrofac Emirates LLC. Based in Abu Dhabi and scheduled to begin operation within the next few months, the new company will provide a full range of engineering, design, procurement and construction services for onshore oil and gas, refining and petrochemical projects throughout the United Arab Emirates.

"Petrofac Emirates will provide safe, efficient and cost effective services to the energy industry," said Ibrahim Al Ansari, Chairman of Mubadala Petroleum Services Company. "The establishment of this joint venture also furthers the diversification of Abu Dhabi in the energy sector and will contribute to ensure the future sustainability of a very important industry through investment in local capabilities and human resources," added Al Ansari.

Alstom signs contract to build stage 3 of Shoaiba in Saudi Arabia

Further to a letter of intent of 28 June 2008, Alstom on Tuesday signed a contract with Saudi Electricity Company (SEC) to build stage 3 of the Shoaiba power plant, worth around €1.9 billion.

The new 1,200 MW steam power plant will be constructed adjacent to the existing plant, located on the Red Sea coast 100 km south of Jeddah. Upon completion of the project, the Shoaiba power station will comprise 14 units of 400 MW each, with a gross total output of 5,600 MW.

Under the terms of the contract, Alstom, as leader of the consortium, will notably design, supply, install and commission the entire plant, including oil-fired boilers, STF40 steam turbines, GIGATOP turbogenerators, sea-water flue gas desulphurization and auxiliary equipment. The boilers are designed to burn both crude and heavy fuel oil and will use Alstom’s advanced low NOx tangential firing technology. Alstom’s consortium partner, Saudi Archirodon, will carry out all the associated civil and marine works.