A consortium of US firm GE and South Korea’s Hyundai Heavy Industries signed a $2.6bn contract to build the Subiya power plant in northern Kuwait.

The Electricity & Water Ministry awarded the contract.

Under the deal, the US-led consortium will build a 2,000MW power plant, the largest in the country.

The plant will use natural gas feedstock with distillate as a back-up fuel.

GE’s share of the contract is $1.3bn. The company will supply six gas turbines equipped with emission-reducing technology, three steam turbines and nine generators.

It will also operate and maintain the plant for seven years from the commercial operation date.

Hyundai is responsible for engineering, procurement and construction (EPC) on the project.

GE is due to begin shipping equipment by mid-2010.

The plant will come on line in two phases. The first in 2011 will have capacity of 1,300MW. A further 700MW will follow in 2012 (MEED 17:8:09).