Alstom has signed a letter of intent with Saudi Electricity Company (SEC) for a turnkey contract to build a new 1,200MW steam power plant in Saudi Arabia.

This new plant, to be built under a contract worth €1.9bn, will be constructed adjacent to the existing Shoaiba power station, 100km south of Jeddah. Following the project, the Shoaiba power plant will comprise 14 units of 400MW each, bringing the total output to 5,600MW. The contract will be finalised later this year.

The agreement, signed on 28 June 2008, marks the third stage of the Shoaiba project. The previous 11 units were supplied by an Alstom-led consortium on a turnkey basis under two separate contracts won in November 1998 and January 2004 respectively.

Under this contract, Alstom will design, supply, install and commission the entire plant, including boilers, STF40 steam turbines, Gigatop 2-pole turbogenerators, sea-water flue gas desulphurisation systems for removal of SO2 and the complete balance of plant and systems for the three units.

Alstom’s consortium partner, Saudi Archirodon, will carry out all the associated civil works.