GE Inks $700M Deal To Supply Saudi Power Plant

General Electric Co. said Monday it has signed contracts worth about $700 million to supply equipment and services for a power plant in Saudi Arabia.

The power plant, called Riyadh PP11, will be located just outside of Saudi Arabia's capital city and will add nearly 1,730 megawatts of power to the Saudi Electricity Company, GE said. The plant will constitute 16 percent of power capacity for the country's central region.

Saudi Arabia is expected to need about 70,000 megawatts of electricity by 2010, GE said. It currently has about 44,000 megawatts in capacity.

Under the contracts, GE will supply seven gas turbines and two steam turbines to the plant. It has also signed a service agreement and will supply spare parts and maintenance.

Shipment of equipment for the project will start in 2011. The first phase, totaling 788 megawatts, will come online in mid 2012. The second phase will begin operation by mid 2013.

Shares of GE, based in Fairfield, Conn., fell 33 cents, or 2 percent, to $16.03 in midday trading.