Tomen and Mitsubishi Heavy Industries Win Order for Steam Turbine Generators in Egypt
2003-07-31
Tomen and Mitsubishi Heavy Industries Win Order for Steam Turbine Generators in Egypt Series Winning in International Tenders for Combined Cycle Power Station Projects
The consortium of Tomen Corporation and Mitsubishi Heavy Industries, Ltd. (MHI) won an order from West Delta Electricity Production Company (WDEPC), Egypt, to supply steam turbine generators to build the Nubaria Power Station, a 1,500 MW gas and steam combined cycle project.
The three companies signed the contract, valued approximately ¥8 billion, on July 30, 2003 in Egypt. The Egyptian Minister of Electricity and Energy also attended the signing ceremony. It is the first large-scale power station project in Egypt for a Japanese consortium after recent Iraq War.
| WDEPC, a wholly owned subsidiary of Egyptian Electricity Holding Company (EEHC) of the Ministry of Electricity and Energy, is responsible for supplying electricity in the Greater Cairo area. WDEPC plans to build the Nubaria Power Station, 120 kilometer north west of Cairo, to meet the increase in electricity demand in the area. The Arab Fund, the Kuwait Fund and the European Investment Bank are providing loans for the construction. | |  |
The Tomen-MHI consortium will supply two units of 255 MW steam turbine generators and auxiliaries on a turn-key basis including their manufacturing, supply, installation, start-up and commissioning, which will be completed in approximately 38 months (in 2006). Tomen-MHI participated in the international tender in March 2003, competing with Japanese and U.S. suppliers, and was selected for the reliability of their steam turbines' performance.
Winning in the international tender follows an earlier order for another large-scale power station project in Cairo. In March 2002, the Tomen-MHI consortium received an order from Cairo Electricity Production Company (CEPC), a subsidiary of EEHC, to supply two units of gas turbine generators to build the Cairo North Power Station, a 750 MW combined cycle project. The contract, valued approximately ¥13.8 billion, will be completed in 2004.
The government of Egypt has been developing gas and steam combined cycle projects to build new power stations to utilize its abundant natural gas resources. A combined cycle power generation system uses its natural gas resources as its main source of fuel. The turbine's high efficiency in generating electricity enables the power stations to have low carbon dioxide (CO2) emissions and is important in reducing global warming.
Egypt, which has one of the world's largest sources of natural gas, has an aggressive plan to develop many natural gas related projects, including construction of gas pipelines to export natural gas to neighboring countries and Europe.
Mr. Michio Ishidate, Senior Managing Director of Tomen, commented at the signing ceremony, "Tomen takes pride in playing a key role in major projects in Egypt that utilize natural gas resources, outstanding technology and our expertise to create high value projects that are pro-environment."
About Tomen Corporation
Tomen is an international company with 80 offices worldwide and is headquartered in Japan. It is listed on the Tokyo, Osaka and Nagoya stock exchanges. It maintains a leadership position in chemicals, foodstuffs, textiles, electronics, energy and plant project business fields, where it seeks to provide innovative services to its customers and business partners.
Tomen established its offices in Alexandria in 1933 and in Cairo in 1956, and has provided expertise in heavy machinery, energy plants, and industrial fields in Egypt. In 1982, Tomen established the joint venture company Alexandria National Iron and Steel Co. (ANSDK). Tomen has supplied substations (valued at more than US$400 million) with Mitsubishi Electric Corporation to the Egyptian Electricity Authority since 1983, and has supplied gantry cranes (valued at more than US$40 million) with MHI for container terminals in Egypt since 1999.
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