Saudi Arabia takes low-carbon energy approach 2017-02-09

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French energy company ENGIE said it was making progress on its efforts to advance its low carbon portfolio with a new contract in Saudi Arabia.


The French energy company said it was awarded a contract to help build a gas-power plant in Saudi Arabia. With the contract, ENGIE said it was taking a lead position as a power producer in the Middle East.


"The Fadhili project is in line with our strategy that aims at concentrating on low CO2 activities via renewable energies and gas for power generation," Isabelle Kocher, CEO of ENGIE, said in a statement.


An economic agenda, dubbed Vision 2030, aims to boost Saudi Arabia's non-oil revenue. The government in Riyadh said it was making progress on economic reforms aimed at correcting a deficit, with both oil and non-oil revenue on pace to increase in 2017.


The government said oil revenues for this year are estimated at $128 billion, 46 percent higher than 2016 projections. Non-oil revenues are estimated at $56 billion, about 6.5 percent higher than 2016 projections.


The Fadhili gas-power plant is designed to produce enough power to satisfy the demands of 1.4 million people and will be, by ENGIE's account, the most efficient plant of its kind ever envisioned for Saudi Arabia.


The Saudi Electric Company and the Saudi Arabian Oil Co. are the plants primary customers.


ENGIE said the plant is slated for commercial operations by the end of 2019. Total investments for Fadhili are estimated at $1.2 billion.


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