Duro Felguera, OHL, TSK or Initec. The development of electricity generation from gas and renewable planned in the coming years as well as the intense activity in the sectors of Oil & Gas and Petrochemical have turned the Middle East into a strategic region for companies like DF, explain company sources to EnergyNews.
So far, within the geographical diversification of Duro Felguera´s portfolio note worthy are Latin America, where the most significant contracts were signed in 2015, with two contracts for the installation of two gas combined cycle power generation plants in Brazil amounting of 800 million euro and a third contract for the construction of a combined cycle plant of 790 MW in Mexico for CFE amounting to 175 million euro (corresponding to 50% of the project scope) as well as a contract for installation of a cogeneration plant in Chile for 106 million euro for the National Petroleum Company (ENAP).
So, at 31 December Latin America represented 64% of its portfolio, Europe 10% and Asia-Pacific 3%, while Africa and the Middle East accounted for 21%. In the latter area DF has built in recent years tanks and pressure equipment for the oil & gas and petrochemical sectors. Specifically, it has carried out 5 LPG spherical tanks; 2 polypropylene rectification columns each of 2200 tons and 5 sludge separation equipment each of 1700 tons, the world´s largest of this type.
From the company they explain that the Middle East “is a strategic region given the development of electricity generation based on gas and renewables planned for the coming years as well as the intense activity in the oil & gas and petrochemical industries.”
Subiya combined cycle plant
Indeed, Duro Felguera DF keeps a pulse on Kuwait to win the award to launch the third phase of the Subiya combined cycle plant, which plans to add 750 megawatts (MW) of capacity to the current facility, as published by the newspaper El Economista and as confirmed by company sources to EnergyNews.
With an offer jointly presented with Kharafi National of 566 million euro, it competes with other Spanish, TSK, which along with Arabian Bemco Contracting Company and Al-Mulla has presented an offer at 588 million euro.
TSK’s presence in the Middle East
TSK was already awarded last September in Kuwait the country´s first solar plant, a project with a total power of 60 MW, comprised of a solar power plant of 50 MW and a photovoltaic plant of 10 MW, to be located in the Shagaya Renewable Energy Park.
The Asturias company has presence in other Middle Eastern countries like Dubai, where it was awarded the construction of one of the largest photovoltaic plants in the world with an installed capacity of 260 MW.
DF, OHL and Initec
According to the same sources, Duro Felguera also bids again with Kharafi National for the second phase of Subiya -250 MW, against OHL, that is presenting offer along with Initec, KCC and United Gulf. Both consortiums are also competing against each other to add this same capability to the Kuwaiti Al-Zour plant.
Last April, the date on which the shareholders meeting was held, Angel Antonio del Valle, president of Duro Felguera stressed his expectation to generate benefits in 2016 expecting contracts between 700 and 800 million euro.
In this regard, he explained that he will maintain a greater presence in its traditional countries of influence to achieve greater continuity in project implementation, reduce risk, reduce costs and increase the success rate in tenders but the company will continue entering new countries or geographical areas when management believes that might be interesting for the company.