Kuwait’s HEISCO makes lowest bid for power service project

News report says project will provide services to Sabiya thermal power plant in Al-Jahra, raising efficiency of Kuwait’s largest gas-fired combined-cycle power plant; country looks to raise renewable generation to 15% by 2030

According to a report by Zawya Projects this week, Heavy Engineering Industries and Shipbuilding Company (HEISCO), a Kuwaiti firm, had presented the lowest bid for a project to provide services to a key power plant in the Gulf state on Tuesday.

The project as it stands

In a disclosure statement on Kuwait’s bourse, the Company said it had submitted a bid of 61.7 million Kuwaiti dinars ($204 million).

As per the contract, HEISCO will provide “highly efficient and continuous engineering services” for combined cycle gas turbine and auxiliaries at Sabiya thermal power plant in Al-Jahra, located west of the capital Kuwait City, the statement said.

Kuwait’s Electricity, Water and Renewable Energy Ministry will be managing the project, as per HEISCO, adding that it would notify market authorities of any new developments regarding the awarding of the contract.

A history of Sabiya

According to a report by NS Energy, the Sabiya West gas-fired combined-cycle power plant is the biggest power station in Kuwait. Owned and operated by Kuwait’s Ministry of Electricity, Water and Renewable Energy (MEWRE), the 2GW gas-fired power station comprises three combined-cycle power blocks.

There is an ongoing upgrade at the Sabiya West power station to increase its total output by more than 7% as part of the New Kuwait Vision 2035 to improve the performance of the country’s power and water infrastructure. The first power block of the facility was upgraded by 2019, according to the NS Energy report.

Construction of the $2.65 billion Sabiya West combined-cycle power project started in September 2009. The simple-cycle phase one of the project, with around 1,400 MW installed capacity, commenced operation in June 2011, according to NS Energy.

Phase two of the plant was completed in July 2012, transforming it into one with combined-cycle operations generating a total capacity of 2 GW.

A renewable future

According to statistics accumulated by GlobalData, thermal power is the primary source of electricity in Kuwait; with gas-based thermal being the dominant source followed by oil-based thermal. Kuwait is almost entirely dependent on fossil fuels for its energy requirements and electricity consumption is expected to triple by 2030. To diversify its energy mix, the Kuwaiti government has set a target to increase the share of renewable generation to 15% by 2030.

Established in 2017, Kuwait Vision 2035’s primary objectives include upgrading infrastructure and diversifying the economy away from the oil industry. The major objectives of the Ministry of Electricity & Water & Renewable Energy are to secure the demand for electricity, promote the use of renewable sources, and encourage the participation of the private sector in the power sector among others.

Energy & Utilities previously reported that Mitsubishi Power had been chosen to upgrade the Sabiya combined cycle plant.

Another report by Energy & Utilities revealed that a pair of Indian EPCs were chosen to build high voltage transmission lines including a 400 kV transmission line part of the Kuwait-Saudi Arabia interconnection project. 

David Haziri contributed reporting

Photo credit: Valmet