Qatar Electricity and Water pulls out of Saudi power project

On The Wires: After its partner pulled out of a Saudi power-plant project, Qatar Electricity & Water, the third-largest publicly traded utility in the Middle East by revenue, has now also dropped the deal.

Doha // Qatar Electricity & Water, the third-largest publicly traded utility in the Middle East by revenue, withdrew from bidding on a power-plant project in Saudi Arabia after partner AES Corporation pulled out.

"Our partner AES chose not to participate," Fahad al-Mohannadi, general manager, said in Doha, Qatar. "Because they withdrew we had no choice but to withdraw because we are a small participant there. We are now looking at other options" in Saudi Arabia, he said.

The 1,500-megawatt Qurayyah project was one of the company's efforts to expand outside Qatar, where it already holds stakes in power plants. Recent construction has created a surplus of generating capacity in the emirate.

Qatar Electric is evaluating the situation in Syria, where protests flared up this month after governments were toppled in Tunisia and Egypt, before proceeding with plans to build a plant there, Mr al-Mohannadi said.

"We need to see how things are managed so there might be a slight hold on this project," he said. "I am sure that's happening with all the partners."

Qatar Electric is looking at opportunities in India, South Korea and Vietnam, and may buy shares in an existing power-plant project in Jordan, Mr al-Mohannadi said. The company also plans to bid for an order in Oman together with Marubeni Corporation he said.

Bloomberg News