Jeffrey Immelt's GE Energy signs $500 million turbine contracts with Saudi Electricity Co

GE Energy, a division of General Electric Co., has signed, with Saudi Electricity Company, contracts worth over $500 million to build and install gas turbines and generators at Saudi Arabian power plants, the company announced on May 27.

GE Energy has won a contract to supply gas turbine generators for a 960-megawatt expansion of the Rabigh Power Plant in Rabigh City. The contract with Saudi Electricity Co. includes technical advice during installation and spare parts.

GE Energy also has won a contract to build and install gas turbines used by four other power plants owned by Saudi Electricity Company in Jizan City, Qunfutha City, Aljouf City and Tabouk City.

Demand for power in Saudi Arabia is rising by about 8 percent a year, GE Energy said. Saudi Arabia is one of GE's key growth regions. GE maintains a work force of more than 600 employees in Saudi Arabia and has joint ventures in energy, health care and appliances.

"These projects are part of Saudi Electricity Co.'s ongoing efforts to meet the region's soaring power demand," said Joseph Anis, GE Energy's region executive for the Middle East, to the Associated Press.

The gas turbines will be manufactured at GE Energy plants in Greenville, South Carolina. The generators will be made in Schenectady, N.Y.

Shares of General Electric rose nine cents to close at $30.64 Thursday.