GE Projects in Saudi Arabia

GE Gains Additional Commitments for Power Projects in Saudi Arabia - Expected GE Scope of Supply More Than $1 Billion. Latest Project Announcements Follow Major Deal Announced in December

GE Energy today announced its second set of commitments in less than two months for major power plant projects in Saudi Arabia.

GE's scope of supply for the new projects is expected to total more than $1 billion by the time the projects are completed. GE signed a new agreement for the Marafiq power generation and water desalination project. Among the parties to the project agreement are SUEZ, Arabian Company for Water and Power Projects and Gulf Investment Corporation G.S.C. GE has entered into a second project agreement for the Riyadh Power Plant No.9 with Saudi Electricity Company.

These commitments follow GE's December 14, 2006 announcement that it had signed three contracts with Saudi Electricity Company valued at more than $950 million for the Qurayyah, Faras and Riyadh Power Plant No. 8 Extension projects in Saudi Arabia. Saudi Electricity Company has recently committed to GE to add service contracts covering maintenance activities on these projects.

"We are extremely pleased that our technology again has been selected to help the Kingdom of Saudi Arabia meet its growing electricity requirements," said Steve Bolze, president of power generation for GE Energy. "The projects announced today combined with the projects announced in December represent a total value to GE of approximately $2 billion."

"As these projects clearly indicate, Saudi Arabia continues to be a very important part of GE's overall growth plans for the Middle East," said Abdullah Taibah, region executive for GE Energy. "Saudi Arabia's electricity use has been increasing at a rate of about seven percent a year and the Industry and Electricity Ministry estimates that the Kingdom will require up to 20 gigawatts of additional power generating capacity by the year 2019. We are committed to helping our customers in Saudi Arabia meet this demand for reliable power."

For the Marafiq project, located in Jubail Industrial City of Saudi Arabia's Eastern Province, GE is part of an EPC consortium that also includes Hyundai Heavy Industries Co. Ltd. and Société Internationale de Déssalement.

Plans are for GE to supply four combined-cycle power blocks including twelve Frame 7FA gas turbines. Net plant output is targeted at more than 2,740 megawatts, with steam extraction for desalination. The GE scope of the project would also include steam turbines, generators, auxiliary equipment, heat recovery steam generators, distributed control systems, design and engineering, project management, technical advisory services, performance testing and training and plant maintenance.

Equipment for the Marafiq project would be shipped from the end of February 2008 through the end of January 2009. Block 1 is scheduled to enter commercial service during the second quarter of 2009, block 2 in the third quarter of 2009, block 3 during the fourth quarter of 2009 and block 4 during the first quarter of 2010. Primary fuel is natural gas, with distillate oil as a backup.

The new facility is to be owned 20 percent by Suez-Tractebel S.A., 20 percent by Gulf Investment Corporation, 20 percent by Arabian Company for Water and Power Projects, 30 percent by Marafiq (Power & Water Utility Company for Jubail and Yanbu), five percent by Saudi Electricity Company and five percent by Saudi Public Investment Fund. Marafiq is conducting this project as part of a series of projects to produce power and water for a very much increasing demand in support of a booming industrial economy in the Kingdom.

For the Riyadh Power Plant 9 project, GE plans to provide twelve Frame 7EA gas turbines, along with technical advisory services and performance testing. The EPC contractor is Arabian BEMCO, based in Jeddah, Saudi Arabia. The project would expand the site's power generation capacity by more than 660 megawatts. This additional output is to be used to help offset a power shortfall expected in 2008 for the Central Area of Saudi Arabia.

The gas turbines for the Power Plant 9 project are scheduled to be shipped during the second half of 2007 with the units expected to enter commercial operation between February and June of 2008. Primary fuel for the expansion project is crude oil.

GE's facilities in Greenville, S.C. manufacture the gas turbines for both projects while the steam turbines for the Marafiq project will be built in Schenectady, N.Y.

GE's gas turbine technology already is well established in Saudi Arabia. Since 2003, the company has supplied nearly 80 gas turbines for projects across in the Kingdom - General Electric.