US power company AES Corporation is planning to sell its 55 per cent stake in Qatar’s Ras Laffan A power project to the local Qatar Electricity and Water Company (QEWC).
The sale follows AES’ deal to sell off a number of its other regional assets, including power plants in Pakistan and Oman. The sell off of another plant in Jordan was cancelled after complications with AES’ contractual obligations to the plant.
The value of the sale has not been disclosed and is expected to be completed in the third quarter of 2010. As part of the acquisition QEWC plans to increase the capacity of the Ras Laffan A plant from 750MW and 40 million gallons a day (g/d) to 5,950MW and its water desalination capacity to 275 million (g/d).
QEWC was advised by the UK’s Royal Bank of Scotland and Norton Rose.