The First Collaboration with Kepco E&C of Korea
Jul. 17, 2012
Mitsui & Co., Ltd. ("Mitsui", Head Office: Chiyoda-ku, Tokyo, President and CEO:Masami Ijima), as a consortium member consisting of Mitsui and KEPCO Engineering& Construction Company, Inc. ("KEPCO E&C"), entered into the full turnkey contract for the engineering, procurement and construction("EPC Contract") of the expansion of the Takoradi T2 power plant in Ghana with Takoradi International Company ("TICO"). The EPC contract was signed on Dec. 28, 2011, and after receiving final approval from the Ghanaian Parliament on Jun. 22, 2012, it has been effective since Jul. 12, 2012.
This project is to add a steam turbine (120MW), two heat recovery steam generators (HRSGs) and a sea water direct cooling system to the existing two gas turbines (110MW each) of Takoradi T2 power plant, which have been operated by TICO. Through the above work, the existing T2 simple cycle power plant will be converted to combined cycle, and its gross capacity will be expanded to 340MW. The total value of the contract is approximately US$260 million and the construction work will last for about 28.5 months to be completed in November of 2014.
Due to rapid economic growth followed by growth of domestic consumption and demand of electricity, Ghana is facing a chronic electricity shortage. In addition, while nearly 40% of the overall Ghanaian capacity relies on thermal power plants, most of these thermal power plants are high-cost and low-efficiency simple cycle power plant. As a result, improving the electricity shortage and reducing generation costs are both urgent issues in Ghana. Since this project will increase generation capacity using the waste gas coming from existing facilities, it will contribute to optimize efficiency of energy use and shortfall of power supply as well as to alleviate the environmental load in Ghana.
This EPC Contract is the first collaboration between Mitsui and KEPCO E&C. Through this opportunity, the both companies will continue to focus on developing more power generation projects in Ghana and Africa.
Outline of the Project
|(1) Scope of Work||Engineering, Procurement, Construction and Commissioning Work for Conversion and Expansion of the Existing Power Plant (including Offshore Work for Sea Water Cooling System)|
|(2) Plant Type||Combined Cycle (the Existing System : Simple Cycle)|
|(3) Fuel||Natural Gas and/or Light Crude Oil|
|(4) Plant Capacity||340MW (the Existing System : 220MW)|
|(5) Location||Aboadze in the Shama District Assembly in the Western Region of the Republic of Ghana|
|(6) Project Period||28.5 months from the issuance of Notice to Proceed|
|(7) Project Cost||Approx. US$260 million|
Outline of Owner Company TICO
|Company Name||Takoradi International Company LLC|
|Address||Aboadze City of Ghana|
|Shareholders||Abu Dhabi National Energy Company 90%
Volta River Authority 10%
|Business||Electricity Business in Ghana|
Outline of KEPCO E&C
|Company Name||KEPCO Engineering & Construction Company, Inc.|
|Address||Yong-In City of Kyung-Gi Province, Korea|
|Main Shareholder||75% Subsidiary of KEPCO|
|Business||Engineering & Construction of domestic and overseas nuclear and fossil power plants.|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
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Mitsui & Co., Ltd.
Corporate Communications Division
The information contained in this news release is true and accurate at the time of publication; however, it may be subject to change without prior notice.