October 14, 2009 No.1318
Tokyo, October 14, 2009 - Mitsubishi Heavy Industries, Ltd. (MHI) has recently concluded five new long term service agreements (LTSA) for Gas Turbine Combined Cycle (GTCC) power generation plants in Egypt, Turkey, Australia and Argentina. In each instance the company has either been involved in the construction of the entire plant or supplied its major components. Under the new agreements MHI will provide supply, maintenance and repair services for components that are exposed to very high temperatures as well as expendable parts, and also dispatch engineers to the sites.
The five facilities subject to the newly concluded LTSAs are GTCC power generation plants at the Sidi Krir and El Atf Power Stations in Egypt, the Bandirma Power Station in Turkey, the Tamar Valley Power Station in Australia and the Costanera Power Station in Argentina. The plants are either new constructions going on-stream in 2009 or 2010, or existing plants subject to LTSA renewal. MHI believes the latest set of contracts resulted from the market's high evaluation of the company's maintenance service capabilities as already demonstrated through its previous LTSA commitments.
The Sidi Krir and El Atf Power Stations, both new, are respectively located approximately 30 kilometers (km) west and 60 km east of Alexandria, Egypt's second-largest city. Both facilities will have capacity to generate 750 megawatts (MW) of electricity. The related LTSAs were concluded with West Delta Electricity Production Company (WDEPC) and Middle Delta Electricity Production Company (MDEPC), respectively. The duration of both agreements is six years starting from August 2009.
The 920 MW Bandirma Power Plant is currently being constructed on the Marmara Sea coast for Enerjisa Enerji Uretim A.S., a Turkish electricity provider. MHI received this order on a full-turnkey basis jointly with an Austrian engineering firm. The new plant is slated to go on-stream in August 2010. The LTSA contract period is six years, with an option to extend another six years.
The LTSA concluded for the Tamar Valley Power Station, which is in Tasmania, Australia, follows MHI's receipt of an order for a GTCC power generation system from Alinta Energy. The new plant, with a capacity of 200 MW, went on-stream in September 2009. The service period under the LTSA is 12 years.
The Costanera Power Plant in Argentina, near Buenos Aires, is a GTCC power generation facility owned by Endesa Costanera S.A. MHI executed this as a full-turnkey order in 1996. Since the plant went on-stream in 1999, MHI has provided maintenance and repair services based on LTSA contracts. The new LTSA represents the second contract renewal and covers a service period of 10 years.
With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages, utilizing high-temperature exhaust gas from the gas turbine. This configuration enables efficient use of energy resources and reduction of CO2 emissions, and thus significantly contributes to energy saving and environmental protection.
MHI, in addition to delivering numerous GTCC power generation systems both at home and abroad and thereby winning the trust of a broad range of customers, also possesses a strong track record in providing system maintenance, repair and management services. In recent years power producers have turned to seeking long-term maintenance services in order to ensure the stable and reliable operation of their plants, and they are increasingly opting for LTSA contracts. Going forward MHI will continue to regard LTSA contracting as a pillar of its service business, and will strive to respond even more precisely to the market's diversifying needs.
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