ABB the leading power and automation technology group, has won a $60 million contract from Shell Gas Iraq B.V. to build a new power plant in southern Iraq.
The power plant will be operated by the Basrah Gas Company, a joint venture company to be set up as part of the Iraq, South Gas Project, following signature of the main project agreements in November 2011. The project includes the rehabilitation of the existing facilities and addition of new facilities. ABB's optimized technical solution and ability to execute the project on a tight schedule were both important factors that contributed to its success in winning this order.
"This project will ensure a stable and reliable power supply to support existing and future infrastructure," said Veli-Matti Reinikkala, head of ABB's Process Automation division. "ABB's capability to fully execute all aspects of this complex project will help provide the Basrah Gas Company with the electricity it needs to successfully power its complete production process."
The Khor Al Zubair project is part of an EPC (engineering, procurement and construction) contract to build a power plant with a total capacity of 50 megawatt (MW), which will feed electricity to the facilities of the Basrah Gas Company.
ABB will be responsible for the overall project management, engineering, procurement, construction, supervision, commissioning and start-up services, as well as performance. The plant is scheduled for completion in the third quarter of 2013.
ABB's scope of supply for the plant includes process control systems, fire and gas, and emergency shutdown systems, power management systems, step-up and distribution transformers, medium- and low-voltage power equipment, and site utilities such as the diesel generator, flare control and compressed air system.
Shell Gas Iraq B.V. is a wholly owned Shell Company participating in the Iraq South Gas project, and will be the Shell shareholder (44%) in the Basrah Gas Company.
The other shareholders in the Basrah Gas Company will be the Iraqi South Gas Company (51%) and Diamond Gas Iraq B.V. a subsidiary of Mitsubishi Corporation (5%).