The Az-Zour North gas-fired combined cycle power and water plant is located at Mina Az-Zour, approximately 100km south of Kuwait City. The power plant is part of the Az-Zour North Independent Water and Power Project (IWPP). The construction of the power plant along with a desalination plant forms the first phase of five phases of the Independent Water and Power Project.
The Kuwait Ministry of Electricity and Water (MEW) purchases the entire output of the plant under a 40-year long-term Energy Conversion and Water Purchase Agreement (ECWPA). Shamal Az- Zour Al-Oula Power and Water Company K.S.C. has engaged with AZN O&M company W.L.L (the contractor) to operate and maintain Az-Zour Power and Water Plant (phase one) for 40 years on it's behalf. AZN O&M Company is equally owned by Engie and Sumintomo Corporation.
Shamal Az-Zour Al-Oula Power and Water Company K.S.C is the joint stock company formed for the development of Az-Zour North One Power and Water plant. In 2008, Kuwait implemented the Public Private Partnerships (PPP) law, aiming to promote public infrastructure development, including power generation sector by engaging the private sector in the development process. A second law followed in June 2010, the Independent Power and Water Project (IWPP) law, which allowed Kuwait Joint Stock Companies to undertake the building and operation of power production and water desalination plants implemented under the PPP Law that produce more than 500 MW.
With the Az-Zour North One plant falling under IWPP law, Kuwait’s first public-private partnership in the development of a public infrastructure project was signed, and Shamal Az-Zour Al-Oula was established.
Shamal Az-Zour Al-Oula is 40% owned by private entities comprising ENGIE (formerly GDF SUEZ), Sumitomo Corporation, and A.H. Al Sagar & Brothers. The remaining 60%, is owned by the Government of Kuwait through the Kuwait Investment Authority (KIA: 5%), the Public Institution for Social Security (PIFSS: 5%) and the Kuwait Authority for Partnership Projects (KAPP: 50%). The Government of Kuwait is mandated to distribute 50% of the total ownership to Kuwaiti citizens through a distribution process managed by KAPP leaving it with 10% stake following the distribution. The distribution process started in October 2019 and ended in November 2019.
This milestone partnership responds to a projected rapid increase in electricity and water demand.
The Az-Zour North One Power and Water plant is awarded under the IWPP law and implemented through a process managed by the Kuwait Authority for Partnership Projects. The plant forms part of an overall IWPP located in the Az-Zour area. The overall IWPP is expected to be developed over five phases, for a total capacity of 4,800 MW of electricity and approximately 280 MIGD of desalinated water to be tendered over a period of four to six years.
Az-Zour North One Power and Water plant is the first privately-owned gas-fired combined cycle power and water desalination plant in Kuwait, and has a capacity exceeding 1,500 megawatts (MW) of electricity and 107 million imperial gallons of water per day (MIGD) (the equivalent of 486 thousand cubic meters per day).
Power generated from Az-Zour North One Plant is equivalent to 10% of Kuwait’s installed power generation capacity, while the water output represents 20% of Kuwait’s water desalination capacity.
The plant supports Kuwait’s significant increase in electricity demand over the coming years, in an effort to help meet an anticipated peak demand of 25 gigawatts (GW) by 2025.
The treated water and the power produced from the plant is entirely supplied to the country’s national power and water grid operated by the Kuwait Ministry of Electricity and Water (MEW) under a 40-year long-term Energy Conversion and Water Purchase Agreement (ECWPA). ENGIE and Sumitomo undertake the operation and maintenance (O&M) of the plant on an equal share basis.
The total construction cost was US$1.7 billion.
The operation of the Az-Zour North plant is carried out by Shamal Az-Zour Al-Oula together with a dedicated Operation and Maintenance Company, a joint venture of ENGIE and Sumitomo Corporation, which brings international standard practice through its shareholders extensive experience in the region and all over the world.
The Az-Zour North plant contributes to the stable supply of electricity and water to the State of Kuwait as a base load plant with state of the art environmentally friendly technology.
AZN O&M Company aims to be the best in class power plant operator in Kuwait.
To be an efficient and reliable source of electricity and drinking water in kuwait.
To fulfill the customer's requirements economically, efficiently and effectively by maximizing plant availability with NO compromises on safety, health and the environment
AZN O&M Company works in accordance with strict high environmental operating standards which include: