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Business / Qatar Business

Umm Al Houl Plant to be operational in July

Published: 27 Feb 2018 - 12:12 am | Last Updated: 02 Nov 2021 - 08:44 am
The Minister of Energy and Industry and Chairman of Qatar Electricity and Water Company (QEWC), H E Dr Mohammed bin Saleh Al Sada (centre); with Vice Chairman Khalid bin Said Al Rumaihi (left); and Managing Director, Fahad Hamad Al Mohannadi; attending th

The Minister of Energy and Industry and Chairman of Qatar Electricity and Water Company (QEWC), H E Dr Mohammed bin Saleh Al Sada (centre); with Vice Chairman Khalid bin Said Al Rumaihi (left); and Managing Director, Fahad Hamad Al Mohannadi; attending th

By Satish Kanady / The Peninsula

DOHA: Qatar’s mega Umm Al Houl Power Project will be operational from July 2018. The QR 11bn project has the capacity to meet 25 percent of the country’s electricity and water demands.
Addressing Qatar Electricity and Water Company’s (QEWC) annual general meeting here yesterday Minister of Energy and Industry H E Dr Mohammed bin Saleh Al Sada, who is also the Chairman of QEWC said that the Umm Al Houl Power project will be completed in coming July. “The project has reached a completion of more than 98 percent. Phase 1 and phase 2 of ‘Water’ and phase1 of ‘Electricity ‘ were completed. It is expected that the project with a capacity of 2,520MW of electricity and 136.50MIGD of Water, will be completed July 2, 2018 at a total cost of QR11bn”.
Speaking on the sidelines of the event, QEWC Managing Director Fahad Hamad Al-Mohannadi said the project will be fully operational in July and the production will compensate the supply from the recently defunct plants.
Umm Al Houl Plant is one of the biggest power and desalination plants in the region, with the participation of QEWC (60 percent),QP (5 percent)Qatar Foundation (5 percent )and consortium of Japanese companies Mitsubishi Corporation and TEPCO (30 percent).
Phase 1 and 2(water) are completed with production capacity of 60 MIGD f desalinated water, Phase 2 (Electricity) is completed with production capacity of 1,600 MW and the whole project is expected to be completed on July 1, 2018 with production capacity of 2,520 MW of power and 136 MIGD of desalinated water.
Dr Al Sada said in his speech that despite the volatility of the regional and global financial markets and the unjust blockade imposed on Qatar, QEWC continued to realize its targets.. “The siege did not affect the electricity and water sector… the company’s projects were not affected any way..” the Minister said.
In the context of achieving the objectives of the overall national strategic plan on renewable energy projects, QEWC completed the procedures for establishing of Siraj Power Company, which is specialized in the production of electric power using solar energy, with a capital of $500m, shared by QEWC 60 percent and QP 40 percent. It is expected to start execution of the company’s first project this year and start production April 2020, with an electricity production capacity of 500MW.During the fiscal year 2017, QEWC’s investments in Qatar were concentrated in UMM Al Houl project and Siraj Power Company. On the future projects, the company’s annual report noted that due to the expiry of the Power and Water Purchase agreement for ras Abu Fontas A (RAF A) with Kahramaa, the company is seeking to make use of this plant either through extending the agreement or thorough selling the plant.
Due to the expiry of the agreement for RAF B with Kahramaa in October 2017, the company has propose extension of the agreement for 12 years until the end of 2029. However,Kahramaaa proposed to extend the agreement for eight months until June 30, 2018, with the same terms and conditions and after modifying the purchase tariff. Negotiations with Kahramaa are still ongoing to reach a final agreement in this regard.