Mubadala fires up Algerian power plant

Dubai: Abu Dhabi state investment agency Mubadala Development said on Sunday it had started operating its 1,227 megawatt gas-fired thermal power plant in Algeria.

The plant, in Tipaza, a coastal province west of Algiers, aims to add close to 20 per cent of the country's energy supply, a company statement said. The plant is the result of a $900 million (Dh3.3 trillion) deal between Abu Dhabi's Mubadala and Canada's SNC-Lavalin Group Inc.

The two companies own a 51 per cent stake in the plant, and the rest is owned by Algerian companies Sonatrach, Sonelgaz and Algerian Energy Company.

The electricity generated will be sold to Sonelgaz under a 20-year contract, Mubadala Chief Executive Saeed Waleed Al Mokarrab Al Muhairi said when the project was announced.

In April, Liwa Energy, a fully owed subsidiary of Mubadala, bought a 20 per cent stake of Royal Dutch Shell's stake in production and exploration projects in Algeria.

Mubadala, managing more than $10 billion of assets, made a loss of Dh11.8 billion last year due to the global financial crisis.