Mitsubishi, Tepco to build Qatari CCGT

OREANDA-NEWS. Japanese trading house Mitsubishi and utility Tokyo Electric Power (Tepco) have won a tender to build and operate a 2,400MW combined-cycle gas turbine (CCGT) power generation plant in Qatar for 25 years.

K1 Energy, a joint venture set up by Mitsubishi and Tepco, won the tender issued in May last year by state-owned Qatar General Electricity and Water to supply power and water. K1, Qatar Power and Water (QEWC), Qatar Petroleum (QP) and Qatar Foundation (QF) will set up a special purpose company Umm Al Houl Power to build, own and operate the CCGT plant and a 590,000 m?/d water desalination plant.

The plants will be located about 20km south of Doha and are expected to start up in 2017. The Japanese joint venture, currently 98.5pc owned by Mitsubishi and the rest by Tepco, is expected to take a 30pc stake in Umm Al Houl Power, while QEWC will hold a 60pc stake, with QP and QF owning 5pc each. Mitsubishi and Tepco are discussing to raise Tepco's stake in K1 to a maximum 33.3pc.

This is the latest deal struck by a Japanese company for export of the country's gas-fired and coal-fired power generation technology, as Tokyo promotes its technology exports to tap a growing overseas market amid shrinking domestic opportunities. Japan is also eying to contribute to the global climate battle under its 2030 goal to reduce greenhouse gas emissions by 26pc against 2013 levels.

Japan's trade and industry ministry (Meti) today announced its "Enevolution" initiative to jointly offer comprehensive, one-stop solutions with the private sector to help developing countries, particularly in Asia, to build energy infrastructure. Meti is planning to hold an energy dialogue this year with India, Indonesia, Thailand and Myanmar (Burma) to exploit such opportunities. Tokyo is also trying to strengthen ties with Asian Development Bank under the initiative, challenging the China-led Asia Infrastructure Investment Bank scheduled for a launch later this year.