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Siemens consortium secures order for power plant extension from Kuwait

A consortium led by Siemens Power Generation (PG) has received an order from Kuwait to extend the Az Zour gas turbine power plant to form a combined cycle station. Purchaser is the Kuwaiti Ministry of Energy. The order is worth a total of approximately EUR600 million, with approximately EUR350 million secured by Siemens PG. The plant will be extended in two phases: Unit 1 is scheduled to start commercial operation in March 2010, with Unit 2 coming on line in June 2010.

In a consortium with the Belgian company Cockerill Maintenance & Ingénierie (CMI) and the local partner Alghanim International, Siemens received the turnkey order for extension of Az Zour to form a combined cycle power plant. In addition to the steam turbine packages the Siemens PG scope of supply also encompasses the water/steam cycle, the turbine building, the transformers, and the entire electrical and instrumentation and control equipment. CMI is to supply the heat-recovery steam generators. For the first time Siemens will supply a plant configuration with four heat-recovery steam generators connected to a single steam turbine. This environment-friendly utilization of exhaust heat will save valuable fuel and simultaneously reduce plant emissions.

"At approximately 15,000 kWh Kuwait`s per capita power consumption is among the highest worldwide," said Klaus Voges, President of Siemens Power Generation. Demand will continue its upward trend as a result of the pronounced growth in population. "The extension will uprate Az Zour by about 560 MW to 1600 MW. The power plant will make a significant contribution toward meeting the country`s growing power demand in an economical and environmentally compatible manner," added Voges.

In 2005, Siemens PG had built Az Zour as a gas turbine power plant with a capacity of 1000 megawatts. The power plant, which is located 80 km south of Kuwait City, can be fired with either natural gas or oil. On July 4, Siemens PG and the Kuwaiti Ministry of Energy also signed a long-term maintenance agreement for the gas turbine part of the plant. This is the first time that the Kuwaiti government has awarded a service contract for a power plant of this size. Siemens will perform the maintenance for the eight gas turbines for the upcoming five years and will also supply replacement parts for the turbines and generators.

The Power Generation Group (PG) of Siemens AG is one of the premier companies in the international power generation sector. In fiscal 2006 (which ended September 30), Siemens PG posted sales amounting to more than EUR10 billion and received new orders totaling EUR12.5 billion, according to U.S. GAAP Group profit amounted to EUR782 million. On September 30, 2006, PG had a work force of approximately 36,400 worldwide.

Siemens AG
Corporate Communications
Press Office Power Generation
Alfons Benzinger
Tel. 49 9131/18-7034
Fax: 49 9131/18-7039
Reference Number: PG 200708.062 e_tp

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