Saudi utility giant Acwa Power last month (February) announced that its consortium –  Gulf Alliance for Power and Water – has signed an energy conversion and water purchase agreement for the Az-Zour North Phase 2 and 3 IWPP in Kuwait. 

A major development for the region, the $4.1-billion Az Zour North 2 and 3 Project boasts a combined-cycle gas turbine (CCGT) plant with a power capacity of 2,700 MW, said Acwa Power in a statement.

The project is located approximately 100 km south of Kuwait City, adjacent to the existing Az Zour North Phase One facility, along the country’s southeastern coastline near the Kuwaiti-Saudi border. 

Furthermore, the project will comprise a desalination component that will utilise seawater reverse osmosis (SWRO) technology to produce 545,500 cu m per day of water.

The agreement was signed by Ministry of Electricity and Water and Renewable Energy State of Kuwait (MEWRE) and the consortium, which is owned by Kuwait Authority for Partnership Projects (KAPP) along with Acwa Power and Gulf Investment Corporation. 

Acwa Power’s effective share in the project is 24 per cent , it stated.

As per the deal with MEWRE, the consortium will be implementing the project on a build, operate and transfer (BOT) basis.

The Energy Conversion and Water Purchase Agreement is for a 25-year period starting from the project commercial operation date.

It will be executed by an international and local EPC consortium led by SEPCO-III, and the project’s gas turbines will be supplied and serviced by GE Vernova, it added.