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Huge Algeria Power Boost

US$2.7 billion in contracts among GE’s largest ever, includes 26 heavy-duty gas turbines, 12 steam turbines, 38 generators

Posted on September 23, 2013

GE announced three contracts totaling approximately US$2.7 billion with SPE, an affiliate of Sonelgaz, Algeria’s national electricity and gas company. GE will supply heavy-duty, combined-cycle gas turbine and aeroderivative gas turbine technology for nine power plants in northern Algeria. The addition of nearly 9 GW of electricity will help Algeria meet its growing energy requirements, which is growing by and estimated 14% each year, GE said.

The three agreements include six new combined-cycle power plants that will add more than 8 MW, increasing the country’s generating capacity by 70%; two fast-track projects that added 528 MW for summer peak demand; and a 370 MW simple-cycle power plant. The nine Sonelgaz power plants will begin simple-cycle duty in 2015 and combined-cycle operation in 2017.

Under the first agreement, GE has signed a US$1.9 billion contract with Société Algérienne de Production de l’Electricité (SPE Spa), part of the Sonelgaz Group, to provide 9F 3-series gas turbines, equipment and services for the six combined-cycle plants. Together, the plants will produce more than 8 GW of electricity, enough for 8 million Algerian households.

GE also announced a long-term joint venture with Sonelgaz for the development of a production facility that will eventually produce more than 2 GW/yr. The new facility is expected to create nearly 400 local jobs and potentially more than 600 additional indirect jobs within the local supply chain.

For the second agreement, GE delivered 24 trailer-mounted TM2500+ aeroderivative gas turbines and services for two “fast-track” projects to produce more than 528 MW of immediate power. This agreement marked one of the largest orders ever received for its aeroderivative technology – 16 units are currently available to generate 352 MW of power for the provinces of Oum el Bouaghi (F’Krina) and M’Sila, with an additional eight units and 176 MW scheduled by the end of 2013.

Under the third agreement, GE has received a US$150 million order from SPE Spa for the Hassi R’mel simple-cycle gas turbine plant, which will add approximately 370 MW to Algeria’s electricity grid.

In addition to supplying equipment for the new Sonelgaz affiliates plants, GE power generation services include new unit spares, technical direction and installation services, and training, the company said.