The US' CMS Energy Corporationstated on 4 September that it was still actively pursuing a captive power project about which it has been negotiating for some months with Saudi Petrochemical Company (Sadaf- MEED 19:7:02). CMS was responding to industry reports in Riyadh suggesting that the US energy firm was on the point of pulling out.
CMS was selected in April 2001 as the preferred bidder for the 240-MW independent power plant (IPP). The electricity generated is to be used, along with the steam produced, to serve Sadaf's petrochemical facilities in Jubail.
Industry sources say there are concerns that CMS' appetite for the project may have been affected by developments in the US energy market, and that there are also problems to be overcome relating to the ancillary services that the IPP would need to purchase from Saudi Electricity Company.
CMS decided at the end of 2001 to pull out of all international investments other than in the Middle East (MEED 30:11:01).
As well as the Saudi project, CMS also has interests in private power and water projects in the UAE.
You might also like...
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.