Saudi Aramco Gas Operations has successfully deployed a corporate procurement agreement and long-term service agreement with the world’s largest heavy industrial gas turbine supplier, Mitsubishi Hitachi Power Systems Ltd. (MHPS).
The first-of-its-kind agreement between the two companies will provide field maintenance, monitoring and extensive technical support of gas turbines by domestically sourced maintenance, parts management, parts supply and repair, thereby creating local jobs.
Abdullah M. Al Ghamdi, executive director of Gas Operations: “The project was driven by cost optimization and operational excellence to operate the Gas Operations’ power plant as best-in-class according to the global benchmarking key performance indicators.”.
The agreement assigns MHPS to expertise the maintenance of their equipment installed at Saudi Aramco facilities, including generators and all auxiliary systems under the partnership of its operating facilities. This includes management of Saudi Aramco’s fleet of MHPS gas turbines and spare parts sharing, covering the gas turbine generator and auxiliaries, including storage, inventory management, and logistics by MHPS.
A local repair facility — with 50% Saudization — is established to facilitate all types of gas turbine parts repair, including a training and simulation center to provide in-Kingdom training for Saudi engineers and technicians.
To date, Mitsubishi’s local affiliate, MHI Power Systems Co. LLC, has delivered 11 M501F gas turbines to Saudi Aramco, producing almost 2,000 megawatts.