KenGen signs $140m pipeline and technology deal with Chinese Sinopec
45 MW Olkaria I geothermal power plant, Kenya (source: bgr.bund.de)
Alexander Richter
8 Apr 2012
Chinese Sinopec has been contracted by KenGen for installation of more than 40 km pipe system and control systems for the 280 MW in development at Olkaria I and Olkaria IV in Kenya. The contract has a value of $140 million.
Reported earlier this week, KenGen has signed a $140 million deal with Sinopec International Petroleum Company (SIPC). The company is one of the largest oil firms in the world and a large conglomerate of various firms in China. Sinopec also operates and owns geothermal district heating systems in China.
The deal contracts the installation of steam pipelines and control systems by Sinopec for the development of 280 MW geothermal power plant projects in Kenya. It was awarded through a competitive biding process and is financed by the World Bank and KfW of Germany.
It is the final major contract for this project. According to Reuters, the pipe system will consist of more than 40 kilometers carrying steam from geothermal wells to units 4 and 6 of the Olkaria I and the Olkaria IV power plants. Both have a planned capacity of 140 MW. The contract has a duration of 20 months and includes the installation of piping system of over 40 kilometers and includes various pipe sizes ranging up to 42 inches in diameter. The wells for the steam have already been drilled.
Source: Reuters, Daily Nation
