The consortium of Japan's Mitsubishi Hitachi Power Systems (MHPS) and Egypt's Elsewedy Electric has won an engineering, procurement and construction (EPC) contract for the expansion of 2,850MW Al Layyah power plant for the Emirate of Sharjah in the UAE.
Under the $550m contract, the consortium will supply two M701F gas turbines to increase the capacity by 1,026.3MW and boost efficiency of the Al Layyah combined cycle project located in the coastal city of Layyah district of the Emirate of Sharjah, for the Sharjah Electricity & Water Authority (SEWA).
As per the contract terms, MHPS will supply the core equipment, including two gas turbines, one steam turbine, three generators and two heat recovery steam generators (HRSG).
The firm’s work includes fabrication, supply, testing and commissioning of the power block equipment in addition to joint project management.
Elsewedy Electric will be responsible for engineering, procurement and installation of balance of plant as well as the erection and installation of the MHPS gas & steam turbines. Its scope represents approximately 65% of the project works.
The firm will also be responsible for the site preparation, levelling and the civil, construction and site utilities for the project.
The expansion of the SEWA-operated Al Layyah power plant is aimed to meet the increasing power supply as a result of economic development in Sharjah, and to promote quality infrastructure investment for environmental preservation and sustainable growth, JBIC said.
In addition to generating power using natural gas and oil, the power plant use the steam created on-site to convert seawater to fresh water.
The expansion project, which will use natural gas as fuel, is planned to be completed in mid-2021.
Japan’s export credit agency (ECA) Japan Bank for International Cooperation (JBIC) has signed a $241m buyer’s credit agreement (export loan) with SEWA for the project. It is co-financed by Société Générale, ING Bank, and Standard Chartered Bank.
JBIC said in a statement: “The loan will also contribute to maintaining and increasing the international competitiveness of Japanese companies.”
MHPS plans to supply its F Series gas turbines to contribute to a stable electricity supply in Sharjah. It is also planning to propose highly advanced thermal power systems to respond to Sharjah and the UAE’s robust power demand.