The Iraqi cabinet on 4 June approved a power purchase agreement for a 250MW gas-fired capacity owned by local private sector firm ‘Silver Crescent’ in the southwestern Muthanna province. This constitutes the first phase of a 1.5GW multi-stage plant. The Ministry of Electricity will pay $24.94/MWh when gas is used as feedstock, rising to $32.37/MWh if heavy fuel oil is burned instead.
Silver Crescent says Oil Ministry subsidiary South Gas Co will provide 75mn cfd of gas feedstock to the plant. The 20-year contract is on a ‘Take and Pay’ basis, meaning the company will only be paid for generated electricity. This contrasts with many existing IPPs whose ‘Take or Pay’ terms force payment even when not receiving supplies (MEES, 11 March 2022). The firm says the first phase consists of two 125MW GE 9E gas turbines with another six added through the second stage for a total 1GW. Two 250MW GE C-7 steam turbines are also planned for heat recovery. This will bring the plant’s full ‘CCGT mode’ capacity up to 1.5GW: when achieved the tariff is set to rise to $36.81/MWh. (CONTINUED - 181 WORDS)