GAS

Siemens steps on the gas

GERMAN giant Siemens is proving popular with Australian gas-fired power operators, having provided turbines for the 65MW expansion of ASX-listed Energy World Corporation’s Indonesian plant, as well as winning a major contract in New South Wales.

In a statement yesterday, Siemens Power Generation announced it would supply gas turbines for a 640MW power station in the Uranquinty area near Wagga Wagga in NSW.

It said the gas turbine plant, which will produce 30% less greenhouse gases than a traditional coal-fired plant, was designed to minimise impact on the surrounding environment and air quality.

Work on the project started last month. It will be handed over to the developers, NewGen Power – a joint venture between energy solution specialist ERM Group and investment bank Babcock & Brown – in late 2008.

“The new power station will provide electricity to NSW homes and business during periods of peak demand,” Siemens executive general manager power generation David Pryke said.

“It has been specifically designed as a fast-starting facility, which means it will be capable of responding to rapid changes in electricity demand while maintaining an uninterrupted supply to customers.”

Elsewhere, Siemens is involved in an expansion of EWC’s existing 135MW Sengkang power station, which it acquired last October.

EWC said construction of the plant had now started with the installation of a 65MW gas-fired turbine unit supplied by Siemens.

The additional electricity produced at the plant, which is being supplied with gas from its namesake field, will be sold to PT PLN under a long-term agreement.

The new generator is expected to be fully commissioned and operational by September 2008.

In addition, EWC and PT PLN have started talks on further increasing output from 195MW to 225MW by installing a second generator, also from Siemens, in the first quarter of 2009.

This extra power would help meet increasing demand in south Sulawesi, where over 53,000 applications for power are still awaiting connection, according to EWC.

“The finalisation of these arrangements demonstrates the EWC group’s ongoing and continuing commitment to provide electrical power to the south Sulawesi regional grid and its growing economy,” director Brian Allen said.

Last October, EWC paid $US61.2 million ($A73.4 million) for El Paso Energy’s 50% interest in Energy Equity Epic (Sengkang) and its 47.5% interest in PT Energi Sengkang.

As a result, EWC now owns 100% and 95% interest, respectively, in the two assets.

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