Intl Power expands after Saudi contract win
International Power, the UK subsidiary of French utility GDF SUEZ, is to expand its jointly-owned Tihama power production sites in Saudi Arabia after winning a contract extension through to 2026 from oil company Saudi Aramco.
International Power, the UK subsidiary of French utility GDF SUEZ, is to expand its jointly-owned Tihama power production sites in Saudi Arabia after winning a contract extension through to 2026 from oil company Saudi Aramco.
The expansion will take place at three of the four existing sites and will generate additional capacity of 532 megawatts (MW) and 2,210 gigajoules per hour (GJ/h) of steam. Following the expansion, Tihama will have a total capacity of 1,595MW and 8,112GJ/h of steam.
Ownership of the expanded will be as per ownership of the existing sites, which are 60% owned by International Power and 40% owned by Saudi Oger.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The total project cost for the expansion is estimated to be $430m, which is being funded by a mix of debt and equity in an 4:1 ratio. The expansion programme is expected to complete by 2015.
"Saudi Arabia is a key market for International Power in the Middle East, with important projects supported by long-term power purchase agreements and backed by very high quality off-takers," said Philip Cox, Chief Executive Officer of International Power.
The UK power producer, currently 70% owned by GDF SUEZ, is to become a wholly-owned subsidiary of the French nuclear power generator after the independent directors agreed to 418p per share cash offer from GDF SUEZ.
JH
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
High earners underestimate how much they need to retire comfortably
High net worth individuals grossly misjudge how much money they need for a comfortable retirement, new data shows, with many not saving enough.
-
Retired banker who gave wife £80m to avoid inheritance tax won’t face equal split in divorce
Family lawyers say the Supreme Court ruling will have significant impact on high net worth divorce cases