Kuwait’s gas-fired plant to come online next year

Azzour NorthOneThe plant aims to meet Kuwait’s plan to meet an anticipated peak demand of 25 GW by 2025. (Image source: Shamal Azzour Al Oula)Kuwait’s first gas-fired combined cycle power and water desalination plant — Azzour North One — is due for completion by Q4 2016, said developer Shamal Azzour Al Oula

It is 40 per cent owned by a private consortium comprising Engie (formerly GDF Suez), Sumitomo Corporation and AH Al Sagar & Brothers. The remaining 60 per cent stake at Shamal Azzour Al Oula is with Kuwait government.

Once completed, the plant will boast a capacity of more than 1,500MW of electricity and 107mn gallons of water per day. This represents 10 per cent of Kuwait’s power capacity and 20 per cent of its water capacity.

The plant, located at the Azzour region of Kuwait, is the first independently owned plant established under the country’s public private partnerships (PPP) law of 2008.

The Kuwaiti government is mandated to sell 50 per cent of the total ownership through an initial public offering (IPO) to the citizens after construction is completed, while the government will its retain 10 per cent stake.

Shamal Azzour Al-Oula also said that it recently achieved a key production milestone with the on-schedule crossing of the 664.2MW power mark, representing 40 per cent of the total power output at the plant.

Shamal Azzour Al Oula chairman Yousef Al Hajri said, “We are proud to announce the crossing of this major milestone today and we are on schedule to operate at 100 per cent capacity by the last quarter of next year.”

The plant aims to meet Kuwait’s plan to significantly increase capacity over the coming years, in a larger effort to meet an anticipated peak demand of 25 GW by 2025.

The treated water and the power produced from the plant will be entirely supplied to the country’s national power and water grid operated by the Kuwait Ministry of Electricity and Water under a 40-year long-term energy conversion and water purchase agreement.

As per the deal, Engie and Sumitomo will undertake the operation and maintenance of the plant on an equal share basis.


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