Wood Group Gas Turbine Services Wins Power Plant Contracts

Subsidiaries of international energy services company John Wood Group PLC's Gas Turbine Services Division ("Wood Group", "WG GTS") have been awarded three turnkey contracts, valued at approximately $195 million, by American Electric Power to construct and commission three peaking power plant facilities during 2007.

Facing a need for additional generating capacity in its Southwestern Electric Power and Public Service of Oklahoma operating companies, AEP selected WG GTS as its contractor for the installation of approximately 680-megawatts of peaking capacity. Using a flexible, performance-based contracting model that leverages Wood Group’s gas turbine shop-based and field-based service capabilities, WG GTS is able to deliver an overall solution to AEP.

With the goal of fast-track construction, start-up and commissioning, the Harry D. Mattison Power Plant will be constructed on a greenfield site in northwest Arkansas, and is expected to enter commercial operation by June 2007. This plant, the first of three facilities overall, will include four GE Frame 7EA gas turbine generators, with a total capacity of 340-megawatts to provide summer peaking power for this rapidly growing market.

"This is the largest power solutions contract award for WG GTS to date and our first opportunity to work with AEP to provide turnkey services for these new facilities," stated Mark Papworth, chief executive officer of WG GTS. "Our ability to provide peaking power capacity, through the procurement and relocation of gas turbine equipment from an existing plant to these three new locations, will enable AEP to quickly meet its customer's requirements for peaking power".

AEP had an aggressive development timeline and there is limited availability of industrial gas turbines with short delivery times in the market. WG GTS sourced the equipment for most of the gas turbine generators for AEP from an existing power station in northeast Mississippi. Using its experience in dismantling, relocating and installing like units on two prior projects, WG GTS will be able to shorten the overall schedule, reduce the capital cost and provide performance guarantees and condition assurances for these turbines.

In addition to the Harry D. Mattison facility, two peaking plants will be constructed in Oklahoma, at the Riverside Power Plant, near Tulsa, and at the Southwestern Power Plant, near Anadarko. Both plant expansions are expected to begin commercial operation by year-end 2007.

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Posted 21/02/07

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